Network externalities exist when a good's value to the consumer rises as:
A)the number of people who use the good increases.
B)the number of people who use the good decreases.
C)the number of people who use the good remains constant.
D)technology improves.

Question

Quizplus · Accepted Answer

Network externalities occur when the value of a product or service increases for users as more people use it. This can manifest in various ways, such as with social media networks where more users mean more content and engagement opportunities for each user. As the number of users increase, the value of the network grows, making it more attractive to new users and further increasing its value.

Network Externalities Exist When a Good's Value to the Consumer