Network effects refer to the ________.
A)increased value of a product or service because there are more people using it
B)the additional costs incurred by customers when they change suppliers
C)the leveraging influence of customers over suppliers
D)ability of suppliers to charge more owing to the lack of competition

Question

Quizplus · Accepted Answer

Network effects occur when the value of a product or service increases as more people use it. This is because more users create a larger market, which in turn attracts more users and creates a virtuous cycle of growth. Examples of products with strong network effects include social media platforms like Facebook and messaging apps like WhatsApp.

Network Effects Refer to the ________