Network externalities are subject to diminishing returns.
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Q177: When a consumer joins a network, the
Q178: The network effect on demand becomes larger
Q179: The network effect works in reverse if
Q180: The external benefit of an additional subscriber
Q181: (Figure: Externalities and Network Effects) Based on
Q183: A customer leaving a network imposes a
Q184: In the market for a network good,
Q185: In the market for a network good,
Q186: (Figure: Understanding Network Good Markets) The graph
Q187: (Figure: Understanding Network Good Markets) The graph
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