A product with a network effect is
A)a drive-through window at a fast food restaurant.
B)a social media tool such as WeChat in China.
C)a broadband telecommunications network.
D)the customer service line at the Department of Motor Vehicles.

Question

Quizplus · Accepted Answer

A network effect occurs when the value of a product or service increases as more people use it. Social media tools such as WeChat in China have a network effect because users gain value from the platform as more of their friends and contacts join and use it. A drive-through window, a telecommunications network, and a customer service line at the Department of Motor Vehicles do not have a significant network effect.

A Product with a Network Effect Is