What is a network externality?
A) It refers to a product that requires connection to a network for it to be useful.
B) It refers to a situation in which a product's usefulness increases with the number of people using it.
C) It refers to having a network of suppliers and buyers for a good or service.
D) It refers to lobbying to form a public enterprise.
B
You might also like to view...
A successful local entrepreneur opens up the only Chevrolet dealership in a medium sized Texas town. Why does this not necessarily constitute a monopoly position?
What will be an ideal response?
Many people tend to buy multiple cars from the same manufacturer because
A) doing so reduces the asymmetric information problem; consumers have better knowledge of quality. B) doing so reduces the asymmetric information problem; consumers have better knowledge of prices. C) doing so doesn't change the asymmetric information problem but consumers have more information. D) doing so increases the consumers brand loyalty.