Network Externalities

question 82

Multiple Choice

Network externalities

• A)can only exist when there are economies of scale.
• B)prevent the dominance of a market by one firm.
• C)exist when the usefulness of a product increases with the number of consumers who use it.
• D)are created when celebrity endorsements of products lead to a surge in the demand for those products.

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Definitions:

Proposition

An articulation offering an evaluation or belief, capable of being correct or incorrect.

Quality

The standard of something as measured against other things of a similar kind; the degree of excellence of something.

Quantity

The amount or number of a material or immaterial thing not usually estimated by spatial measurement.

Quality

The quality of an item when compared to other similar items; how excellent something is.