A Network Effect Arises Whenever

question 184

Multiple Choice

A network effect arises whenever

• A) firms in an oligopolistic industry engage in limit pricing.
• B) firms in an oligopolistic industry engage in a zero-sum game.
• C) a consumer's willingness to purchase a good or service is influenced by how many others also buy or have bought the item.
• D) a producer's willingness to produce a good or service is influenced by how many other firms also produce or have produced the item.