When a product is characterized by network effects, then the product _____ when more customers use the product.
A)becomes more valuable to each customer
B)is compatible with more and more other products
C)drops in price
D)is sold to other companies or organizations that have a group of customers.

Question

Quizplus · Accepted Answer

With network effects, the value of the product increases as more customers use it. This is because more users create a larger network of connections, which enhances the usefulness of the product for each individual user. Therefore, the correct answer is A: the product becomes more valuable to each customer.

When a Product Is Characterized by Network Effects, Then the Product