In a network good's market:
A) the output is usually split evenly among many different sellers.
B) the best product might not be the most popular product.
C) there is fierce competition "in the market."
D) the government is the low-cost leader.

Question

Quizplus · Accepted Answer

In a network good's market, the product with the highest quality or performance may not necessarily be the most popular one. This is because in such a market, the success of a product depends not only on its inherent features but also on its compatibility with other products and the network effects that it can generate. Therefore, a product with lower quality or performance but better compatibility or network effects may have a wider adoption than a superior product.

In a Network Good's Market