A firm that produces a product that is characterized by ________ externalities finds it easier to keep its customers from switching to rivals.
A) negative
B) positive
C) network
D) labor market
E) public good

Question

Quizplus · Accepted Answer

Network externalities (also known as network effects) make a product more valuable as more people use it, which can create a barrier to entry for competitors and make it harder for customers to switch to rival products due to the value derived from the product's widespread use.

A Firm That Produces a Product That Is Characterized by ________