NextDoor is an instant messaging application for smartphones.New smartphone users find it easier to connect with friends and relatives through this mobile app when compared to other similar instant messaging applications.Hence,it has the largest user base in the industry.Thus,NextDoor app's value has increased primarily due to its
A) learning curve effects.
B) economies of scale.
C) economies of scope.
D) network effects.

Question

Quizplus · Accepted Answer

NextDoor app's value has increased primarily due to its network effects. A network effect is the positive effect that one user of a product or service has on the value of that product for other users. Network effects occur when the value of a product or service increases, often exponentially, with the number of users.

NextDoor Is an Instant Messaging Application for Smartphones