When users' preferences exhibit network externalities,
A)computer producers charge higher prices and earn higher profits when they make their machines compatible;
B)consumers are worse off when firms sell compatible machines.
C)consumers are well off when firms sell compatible machines
D)Both A & B

Question

When users' preferences exhibit network externalities,                                
A)computer producers charge higher prices and earn higher profits when they make their machines compatible;
B)consumers are worse off when firms sell compatible machines.
C)consumers are well off when firms sell compatible machines
D)Both A & B

Quizplus · Accepted Answer

The Answer of When users' preferences exhibit network externalities,                                
A)computer producers charge higher prices and earn higher profits when they make their machines compatible;
B)consumers are worse off when firms sell compatible machines.
C)consumers are well off when firms sell compatible machines
D)Both A & B

When Users' Preferences Exhibit Network Externalities