Economists have noted how the value of a product or service can increase as more consumers adopt the product; in other words,as the network increases.This is referred to as:

Question

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Positive network effect refers to the phenomenon where the value of a product or service increases as more people use it. This is because it creates a network or community effect where the more people there are in the network, the more benefits there are to each individual user. This effect can be seen in many technological products and services, such as social media platforms or messaging apps.

Economists Have Noted How the Value of a Product or Service