Increases in the value of the product to each user, including existing users, as the total number of users rises is called:
A)network effects.
B)simultaneous consumption.
C)learning by doing.
D)the spreading of development costs.

Question

Quizplus · Accepted Answer

Network effects occur when the value of a product or service increases for both new and existing users as more people use it. This can occur through a variety of mechanisms, such as increased opportunities for connectivity, enhanced functionality, or improved pricing. As a result, network effects promote rapid growth and adoption of products or services, especially in industries where economies of scale are critical to success.

Increases in the Value of the Product to Each User