When there is a positive network externality to a network good, a larger network is associated with a(n)
A) increase in demand.
B) decrease in demand.
C) increase in supply.
D) decrease in supply.

Question

Quizplus · Accepted Answer

Positive network externalities mean that the value of a good or service increases as the number of users increases, leading to an increase in demand for the network good as the network grows.

When There Is a Positive Network Externality to a Network