A Good Is Subject to a Network Externality When

question 165

Multiple Choice

A good is subject to a network externality when:

• A)the value of the good to an individual is less when a large number of other people also use the good.
• B)the value of the good is determined only by marginal private benefits.
• C)an increase in the number of other people using the good increases its value to an individual.
• D)a good yields negative externalities.

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Definitions:

Self-Actualization

Fulfilling or actualizing an individual's capabilities and potential, perceived as an innate urge or demand in every person.

Humanism

A philosophical and ethical stance that emphasizes the value and agency of human beings, individually and collectively, often emphasizing human dignity and concerns.

Gestalt

A psychological theory that proposes objects are viewed holistically rather than as a collection of individual parts, emphasizing the mind's innate tendency to organize perceptions.

Phenomenon

an observable event or fact, particularly extraordinary or remarkable, that can be scientifically described or explained.