In the market for a network good, the private demand curve lies to the right of the social demand curve.

Question

Quizplus · Accepted Answer

In the market for a network good, the social demand curve lies to the right of the private demand curve because the social demand curve accounts for the positive externalities or network effects that an individual's consumption provides to other users, increasing the overall value of the good as more people use it.

In the Market for a Network Good, the Private Demand