Which of the Following Conditions Is Required for a Networkgood

question 29

Multiple Choice

Which of the following conditions is required for a networkgood to succeed over a better good in the market?

• A)The network good should have a minimal number of consumers so that customers are not competing for the same
• Network.
• B)The network good should have a much larger number of consumers or users than the better good.(True Answer
• )Correct
• C)The network good should be a free good.
• D)All of these conditions are required.

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Definitions:

Independent Trader

An individual who engages in the buying and selling of financial instruments such as stocks, bonds, commodities, and derivatives, using their own capital.

National Government

The organization responsible for governance and administration of a nation, typically composed of executive, legislative, and judicial branches.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.

Purchasing Power

Refers to the financial ability of an individual or group to buy goods and services, often influenced by income levels and inflation rates.