-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:

Institutional Discrimination

Policies or practices within institutions that result in unequal treatment or opportunities for members of different groups.

Indirect

Not directly caused by or resulting from something; involving an intermediate agent or step.

Direct

Direct refers to an action or method that is straightforward and without intermediaries, often leading to immediate effects or outcomes.

Segregation

The formal physical or social separation of dominant and minority groups.