When a consumer's willingness to buy a good or service is influenced by the number of people who have purchased that good or service, this is called
A) a switching cost.
B) an opportunity cost.
C) a network effect.
D) an advertising gimmick.

Question

Quizplus · Accepted Answer

This phenomenon is known as the network effect, where the value of a product or service improves as more people use it. The increased usage creates a positive feedback loop that attracts even more users, further improving its value.

When a Consumer's Willingness to Buy a Good or Service