The concept of network externalities is most relevant to purchasers of
A)computer software.
B)automobiles.
C)television sets.
D)radios.

Question

Quizplus · Accepted Answer

Network externalities refer to the effect that a product or service has on the value of other products or services within a particular network or system. This is most relevant to computer software, such as operating systems or software applications, where the value of the product is determined by the number of users in the network. As more people use a particular software application, the value of that software increases for all users because there are more opportunities for collaboration, data exchange, and compatibility.

The Concept of Network Externalities Is Most Relevant to Purchasers