The benefit added by the 50,000th user in a new network is _____ than the benefit added by 50,000,000th user, due to _____ returns to the network externality.
A) larger; increasing
B) larger; diminishing
C) smaller; increasing
D) smaller; diminishing

Question

Quizplus · Accepted Answer

The benefit added by the 50,000th user in a new network is larger due to diminishing returns to the network externality. Initially, each new user adds significant value to the network, but as the network grows, the marginal benefit of adding new users decreases.

The Benefit Added by the 50,000th User in a New