Network Externalities Refer to the Situation Where the Usefulness of a Product

question 241

True/False

Network externalities refer to the situation where the usefulness of a product increases with the number of consumers who use it.

---

Definitions:

Life Satisfaction

The degree to which an individual positively evaluates the overall quality of their life as a whole.

Reinforcement Theory

A concept in psychology that suggests behavior is strengthened or weakened by rewards or punishments.

Demographic Characteristics

Attributes of populations, such as age, sex, income level, race, employment, and geographic location, used in social sciences to classify and study groups of people.

Intelligence

Intelligence encompasses the mental capabilities to learn from experience, adapt to new situations, understand and handle abstract concepts, and use knowledge to manipulate one’s environment.