The "installed base" relates to direct network externalities in what way?

Question

Quizplus · Accepted Answer

The installed base refers to the number of users or customers who have already adopted a particular product or technology. Direct network externalities occur when the value of a product or technology increases as more people use it. Therefore, the more people who are using a particular product or technology (i.e., the larger the installed base), the greater the direct network externalities will be. Hence, the installed base and direct network externalities increase in a direct relationship.

The "Installed Base" Relates to Direct Network Externalities in What