Which of the following is used to explain why a consumer's willingness to buy Microsoft Office increases as the number of other people who use Microsoft Office increases?
A)network externalities
B)market failure
C)diminishing marginal utility
D)the income effect of a price change

Question

Quizplus · Accepted Answer

Network externalities refer to the positive impact that additional users of a product or service have on its value to others. In the case of Microsoft Office, as more people use it, the compatibility and ease of collaboration with others who also use it increases, leading to a higher willingness to buy the product.

Which of the Following Is Used to Explain Why a Consumer's