Why Does Network Externality Arise

question 59

Multiple Choice

Why does network externality arise?

• A)Each additional unit of a good sold reduces the value of the previously sold units.
• B)As more and more units of a good are produced,the average cost declines.
• C)Consumption of a good by one user does not affect the consumption of subsequent users.
• D)The firms enjoy economies of scale in the long run.
• E)Each additional unit of the good sold increases the value of the previously sold units.

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Definitions:

Outputs

The final results produced by a system, device, or program, often as a response to inputs.

Analog Output Interface

A device or circuitry that converts digital signals from a computer or controller into continuous analog signals for controlling external hardware.

Numerical Data

Information represented in numbers, used extensively in statistical analysis and scientific research.

Processor

The central unit in a computer or microcontroller that interprets and executes instructions.