When customers attain their desired level of network externality benefits at lower levels of market share
A) it implies that only one specific technology dominates.
B) they face a relatively small indifference region.
C) the network externality curves flatten out sooner.
D) the technology has reached its optimum level of performance.

Question

Quizplus · Accepted Answer

Network externality curves show the relationship between the value of a product to its consumers and the number of consumers using that product. When customers attain their desired level of network externality benefits at lower levels of market share, it means that the network externality curves start to flatten out sooner. This happens because the value of the product to the consumers is not increasing at the same rate as the number of users, implying that the benefits of using the product are already attained at lower levels of market share. This can happen when there is only one dominant technology or when the customers' network externality benefits are already satisfied with a lower adoption rate.

When Customers Attain Their Desired Level of Network Externality Benefits