Network effects and lock-in of certain technologies affect which ratio?
A) Values received decreases as the number of users increase.
B) Values received increases as the number of users increase.
C) Price increases as availability increases.
D) Benefits decrease as the number of users increase.
E) Values received increases as the costs increase.

Question

Quizplus · Accepted Answer

Network effects refer to the phenomenon where the value of a product or service increases as more users adopt it. As more people use a particular technology, the value proposition increases for new users, which means that the ratio between values received and the number of users would be favorable. This can lead to lock-in effects, where users stick with a particular technology even if better alternatives become available, because of the network effects and the value they derive from the technology.

Network Effects and Lock-In of Certain Technologies Affect Which Ratio