In a market characterized by network externalities,the benefit from using a good decreases with an increase in the number of other users of the same good.

Question

Quizplus · Accepted Answer

The statement is incorrect. In a market characterized by network externalities, the benefit of using a good increases with an increase in the number of other users of the same good, as it enhances the value of the product or service. Examples of such markets include social media, telecommunications, and software platforms.

In a Market Characterized by Network Externalities,the Benefit from Using