A telephone is much more useful to a consumer when other people also have telephones.This illustrates which of the following concepts?

Question

Quizplus · Accepted Answer

Network economies (also known as network effects) occur when the value of a product or service increases as more people use it. In this case, the telephone becomes more valuable to a consumer when others also have telephones because it allows for easier communication between parties. This is an example of positive network effects.

A Telephone Is Much More Useful to a Consumer When