Network externalities arise NOT just when users are linked on a network but also when
A)much value is gained from compatibility with associated ancillary products and services.
B)downstream costs of switching from a failed alternative candidate standard are high.
C)there are clear price and availability advantages to buying the market leader's product.
D)all of the above.

Question

Quizplus · Accepted Answer

Network externalities can arise from a variety of factors, including compatibility with other products and services (choice A), switching costs from alternative standards (choice B), and advantages in pricing and availability of the market leader's product (choice C). Therefore, all of the above choices are correct as they contribute to network externalities.

Network Externalities Arise NOT Just When Users Are Linked on a Network