-Why Does a Network Externality Arise

question 88

Multiple Choice

-Why does a 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 a good sold increases the value of the previously sold units.

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Definitions:

Control Panel

A part of the operating system that enables users to change system configurations and manage hardware operations.

Local Account

A user account that is created and managed on a single computer or device, not associated with online or network services.

Cloud

A network of remote servers hosted on the Internet to store, manage, and process data, as opposed to using a local server or a personal computer.

Local Account

An account that is created and managed directly on a device, allowing access to that specific device without the need for online authentication.