Which of the following statements holds true of network effects?
A) It refers to a collection of resources available for access over the Internet.
B) It refers to adapting products and services for different languages and regional differences.
C) It refers to a situation when the value of a product or service increases as the number of its users expands.
D) It refers to a situation when others take advantage of a user or a service without providing any kind of reciprocal benefit.
E) It refers to a closed network or a single set of services controlled by one dominant firm.

Question

Quizplus · Accepted Answer

Network effects occur when a product or service becomes more valuable to its users as more people use it. This is often seen in social networks, online marketplaces, and software platforms where the utility and appeal of the service increase with the number of users.

Which of the Following Statements Holds True of Network Effects