The network effect on demand becomes larger as more people join the network.
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Q173: A network good is one with which
Q174: When a consumer joins a network, the
Q175: Network externalities are similar to positive externalities
Q176: Network externalities benefit the user who generates
Q177: When a consumer joins a network, the
Q179: The network effect works in reverse if
Q180: The external benefit of an additional subscriber
Q181: (Figure: Externalities and Network Effects) Based on
Q182: Network externalities are subject to diminishing returns.
Q183: A customer leaving a network imposes a
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