The Critical Mass for a Network Good Is Also Known

question 87

Multiple Choice

The critical mass for a network good is also known as a(n)

• A) tipping point.
• B) optimal point.
• C) network externality.
• D) core user.

---

Definitions:

Inferior Goods

Products whose demand decreases as the income of consumers increases, due to the preference for higher-quality substitutes.

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Optimal Choice

The best possible decision or selection, based on a specific set of criteria, that maximizes efficiency, benefit, or utility.

Marginal Rate

The amount of change in one variable due to a unit change in another, commonly used in contexts like taxation or economic production.