_____ exist(s) when the value of a good or service to an individual increases as the number of other people using the same good or service increases.
A)Dependence on a scarce resource or input
B)Returns to scale
C)Government-created barriers
D)Network externalities

Question

Quizplus · Accepted Answer

Network externalities, also known as network effects, occur when a product or service becomes more valuable as more people use it. This can create a positive feedback loop, where the more people that use a particular product or service, the more attractive it becomes to others, leading to even more adoption. This phenomenon can be seen in technology products like social media platforms or messaging apps, where the more people using the platform, the more valuable it becomes to users.

_____ Exist(s) When the Value of a Good or Service