The presence of significant positive ________ externalities can drive small firms out of business or force them to merge with larger competitors.
A) network
B) negative
C) production
D) public
E) size

Question

Quizplus · Accepted Answer

Network externalities, especially positive ones, can lead to situations where the value of a product or service increases as more people use it. This can create a competitive advantage for larger firms with more users, potentially driving smaller firms out of business or forcing them to merge to compete.

The Presence of Significant Positive ________ Externalities Can Drive Small