Why Does Network Externality Arise

question 59

Multiple Choice

Why does network externality arise?

• A)Each additional unit of a good sold reduces the value of the previously sold units.
• B)As more and more units of a good are produced,the average cost declines.
• C)Consumption of a good by one user does not affect the consumption of subsequent users.
• D)The firms enjoy economies of scale in the long run.
• E)Each additional unit of the good sold increases the value of the previously sold units.

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Definitions:

Adaptive Coping

Positive coping mechanisms that are used to handle personal and interpersonal conflicts in a constructive and healthy manner.

Dialectical Behavior Therapy

A form of cognitive-behavioral therapy designed to instruct individuals on how to exist in the present, establish beneficial stress management techniques, manage their feelings, and enhance their interactions with others.

Traumatic Experiences

Events that cause psychological trauma due to their distressing nature, often leading to lasting mental and emotional effects.

Problematic Dependence

A condition characterized by the excessive need for and use of a substance or behavior that leads to significant impairment or distress.