When Does a Network Externality Exist

question 42

Multiple Choice

When does a network externality exist?

• A) when advertising has an impact on the number of people purchasing a good.
• B) when a change in the price of a good influences the quantity demanded.
• C) when the number of people purchasing a good impacts the supply curve
• D) when the number of people purchasing a good influences quantity demanded

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Definitions:

Crowdsourcing

The practice of obtaining input or information from a large number of people, typically via the Internet, to solve problems, gather information, or generate new ideas.

Social Media

Websites and applications that enable users to create and share content or to participate in social networking.

Crowdsourcing

The process of gathering ideas, information, or content by requesting contributions from a broad audience, usually through the internet.

Analytics

The systematic analysis of data or statistics, often using advanced methods to extract insights for decision-making or optimization.