The addition of gasoline pumps at a grocery store is a good example of a network externality.

Question

Quizplus · Accepted Answer

The addition of gasoline pumps can create a network externality because it attracts more customers to the store who are looking to purchase gasoline. This can also lead to increased sales for the grocery store as customers may decide to also purchase groceries while they are at the gas station. Additionally, the convenience of having both gasoline and groceries available in one location can create a positive network effect for the store, as more customers may choose to shop there due to the added convenience.

The Addition of Gasoline Pumps at a Grocery Store Is