Figure 4.5.1
-Which of the following are examples of situations with negative network externalities?

Question

Quizplus · Accepted Answer

A crowded beach is an example of a negative network externality because the more people that are on the beach, the less enjoyable it is for everyone. A rare work of art is not an example of a negative network externality because the more people that appreciate it, the more valuable it becomes. Clothing made to order is not an example of a negative network externality because the more people that order it, the more efficient the production process becomes.

Figure 4.5.1 -Which of the Following Are Examples of Situations with Negative