Which of the following is an example of a good with positive network externalities?
A) A high-end car that has a long waiting list of prospective buyers
B) A shaving cream that is sold along with a pair of free razor blades
C) An online dating service that only allows registered users to use the service
D) An all-you-can-eat buffet at a restaurant
E) A movie screening that requires customers to buy tickets to watch the movie

Question

Quizplus · Accepted Answer

An online dating service that only allows registered users to use the service is an example of a good with positive network externalities. The more people that use the service, the greater the potential matches available for each user. This creates a positive externality in which everyone benefits from the larger network of users.

Which of the Following Is an Example of a Good