When do network externalities exits?
A) when the purchase of a product by an existing customer creates additional value for existing customers
B) when the purchase of a product by an existing customer creates additional value for a new customer
C) when the purchase of a product by a new customer creates additional value for existing customers
D) when the purchase of a product by a new customer creates additional value for new customers

Question

Quizplus · Accepted Answer

Network externalities exist when the purchase of a product by a new customer creates additional value for existing customers, as the value of the product increases with more users.

When Do Network Externalities Exits