A network demand curve slopes upward at lower quantities and downward at higher quantities.

Name: A network demand curve slopes upward at lower quantities and downward at higher quantities.
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Question

Quizplus · Accepted Answer

The network demand curve slopes upward at lower quantities because the marginal cost of adding a new user is low. As the number of users increases, the marginal cost of adding a new user increases, so the demand curve slopes downward at higher quantities.

A Network Demand Curve Slopes Upward at Lower Quantities and Downward