etwork externalities are present when the usefulness of a product A. increases with the number of consumers who use it. B. increases because there is no market failure. C. decreases because it is consumed publicly. D. increases with the endowment effect. E. increases because there are no switching costs.
etwork externalities are present when the usefulness of a product A. increases with the number of consumers who use it. B. increases because there is no market failure. C. decreases because it is consumed publicly. D. increases with the endowment effect. E. increases because there are no switching costs.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Network externalities are present when the usefulness of a product
increases with the number of consumers who use it.
increases because there is no market failure.
decreases because
it is consumed publicly.
increases with the endowment effect.
increases because there are no switching costs.
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