A Network Externality Occurs When ________

question 31

Multiple Choice

A network externality occurs when ________.

• A) the value of a product increases as more consumers start to use it
• B) firms collude to sell products at a price higher than the equilibrium market price
• C) a firm that has control over key resources auctions the resources off to other firms
• D) the government interferes to prevent the concentration of market power in the hands of a few firms