Which of the following is used to explain why a consumer's willingness to buy Microsoft Office increases as the number of other people who use Microsoft Office increases?
A)Network externalities
B)Market failure
C)Diminishing marginal utility
D)The income effect of a price change

Question

Quizplus · Accepted Answer

Network externalities refer to the phenomenon where the value or utility of a good or service increases as more people use it. In this case, as more people use Microsoft Office, it becomes more valuable for a consumer to also use it, due to compatibility and communication benefits.

Which of the Following Is Used to Explain Why a Consumer's