A classic example of network externalities, is:
A)The retailing industry
B)The automobile industry
C)The telephone
D)The housing industry

Question

Quizplus · Accepted Answer

The telephone is a classic example of network externalities because the value of the phone system increased as more people adopt it, making it more useful for communication. As more people use the service, the value of the network increases, making it more attractive for others to join. This creates a positive feedback loop that reinforces the network effect.

A Classic Example of Network Externalities, Is