Network effects are associated with:
A) Supply-side economies of scale
B) Demand-side economies of scale
C) Both supply-side and demand-side economies of scale
D) Large manufacturing facilities
E) Word-of-mouth communication

Question

Quizplus · Accepted Answer

Network effects are primarily associated with demand-side economies of scale, where the value of a product or service increases for both new and existing users as more people use it.

Network Effects Are Associated With