Which condition is required for a network good to succeed over a better good in the market?
A) The network good should have a minimal number of consumers so that customers are not competing for the same network.
B) The network good should have a much larger number of consumers or users than the better good.
C) The network good should be a free good.
D) All of these conditions are required.

Question

Quizplus · Accepted Answer

The network good needs to have a larger number of consumers or users than the better good in order for it to succeed. This is because the value of a network good increases as more people use it, creating a positive feedback loop. Therefore, having a larger user base is critical for the success of a network good. The other conditions mentioned are not necessary for the success of a network good.

Which Condition Is Required for a Network Good to Succeed