A Good Is Subject to a Network Externality When

question 165

Multiple Choice

A good is subject to a network externality when:

• A)the value of the good to an individual is less when a large number of other people also use the good.
• B)the value of the good is determined only by marginal private benefits.
• C)an increase in the number of other people using the good increases its value to an individual.
• D)a good yields negative externalities.

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Definitions:

Rule Changing

The process of modifying the guidelines, policies, or laws that govern behavior within an organization or society.

Final Application

The ultimate or last step in a process or series of actions, typically involving the practical or concrete use of a concept, tool, or product.

New Product

A product that has been recently developed or introduced to the market, offering new or enhanced features.

Marketing

is the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.