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:

Tubercul

A term associated with tuberculosis, a contagious bacterial infection caused by Mycobacterium tuberculosis that primarily affects the lungs.

Pneumoconiosis

A disease of the lungs caused by the inhalation of various forms of dust, often in occupational settings.

Bronchoscope

A medical instrument used to view the inside of the airways and lungs.

Bronchi

The major air passages of the lungs that diverge from the windpipe.