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Network Externalities Exist When a Good's Value to the Consumer

question 230

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Network externalities exist when a good's value to the consumer rises as:


Definitions:

Loans Receivable

Loans receivable are amounts owed to a lender by borrowers, recognized as assets on the lender's balance sheet.

Repayment

The act of paying back money previously borrowed from a lender.

Net Income

The amount of money that remains after all operating expenses, taxes, and interest have been deducted from total revenue; also referred to as net profit.

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