Solved

-Why Does a Network Externality Arise

Question 67

Multiple Choice

  -Why does a network externality arise? A) Each additional unit of a good sold reduces the value of the previously sold units. B) As more and more units of a good are produced, the average cost declines. C) Consumption of a good by one user does not affect the consumption of subsequent users. D) The firms enjoy economies of scale in the long run. E) Each additional unit of a good sold increases the value of the previously sold units.
-Why does a network externality arise?


A) Each additional unit of a good sold reduces the value of the previously sold units.
B) As more and more units of a good are produced, the average cost declines.
C) Consumption of a good by one user does not affect the consumption of subsequent users.
D) The firms enjoy economies of scale in the long run.
E) Each additional unit of a good sold increases the value of the previously sold units.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents