If product sales are dependent on sales of complementary products, _____ exists.
A) virtual network externalities
B) explicit network externalities
C) social network externalities
D) indirect network externalities

Question

Quizplus · Accepted Answer

Indirect network externalities occur when the demand for a product is dependent on the demand for complementary products, leading to a network effect. This can create a situation where the value of a product increases as more people use complementary products, even if the product itself does not change.

If Product Sales Are Dependent on Sales of Complementary Products