Microeconomics
5th Edition
ISBN: 9781319098780
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Question
Chapter 16, Problem 2QFT
To determine
To explain:
The reason behind the greater fragmentation of users.
Concept introduction:
Externality in Economics:
In economics, externality is a concept which discusses the consequence of an economic activity which can have a positive or a negative impact on the third party who is completely unrelated to the activity.
Positive externality:
Externality which creates benefit to the third party is positive externality.
Negative externality:
Externality which creates harm to the third party is negative externality.
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