A situation where a consumer's willingness to use an item depends on how many others use it is
A) a positive-sum game.
B) a network effect.
C) price-leadership.
D) a vertical merger.

Question

Quizplus · Accepted Answer

A network effect occurs when the value of a product or service increases as the number of users increases. This means that a consumer's willingness to use an item is dependent on how many others use it.

A Situation Where a Consumer's Willingness to Use an Item