You are good at creating Web sites.You make a social media Web site similar to Facebook,but after a while your Web site does not get enough attention and your business fails.This is because ________.
A) Facebook has a patent on social media and it challenges you in court
B) of the increasing average costs of running the Web site
C) of the network externality already established for Facebook
D) of the high costs of entering this market

Question

Quizplus · Accepted Answer

The network externality already established for Facebook means that there is a strong preference among users to stay on Facebook, as it has a large user base and extensive network effects. This makes it difficult for a new social media website to gain traction and attract users, ultimately leading to its failure. Factors such as patents, costs, and market entry barriers may also play a role, but the established network externality is the primary reason for the lack of attention and failure of the Web site.

You Are Good at Creating Web Sites