When a Consumer Joins a Network, the Value of the Network

question 183

Multiple Choice

When a consumer joins a network, the value of the network to existing users _____, and the value to potential users _____.

• A) rises; rises
• B) rises; does not change
• C) does not change; rises
• D) falls; falls

---

Definitions:

Production Technique

The method or process used to convert inputs into outputs in manufacturing or service delivery.

Price of Labor

The wages or salary paid to workers for their labor, typically determined by the supply and demand for labor in the market.

Price of Capital

The cost of accessing financial capital, determined by the interest rate or return expected by investors.

Marginal Costs

The cost associated with producing one additional unit of a product or service.