When the tipping point is reached for an expanding network good, this has the effect of creating a(n)
A) virtuous cycle leading to greater network expansion.
B) vicious cycle leading to a shrinking network.
C) equilibrium at the tipping point.
D) upward shift of the network demand curve.

Question

Quizplus · Accepted Answer

When the tipping point is reached for an expanding network good, it often leads to a virtuous cycle where the value of the good or service increases as more people use it, encouraging even more people to join and further expanding the network.

When the Tipping Point Is Reached for an Expanding Network