Network effects exist when the likelihood of consumers purchasing a product increases with volume.

Name: Network effects exist when the likelihood of consumers purchasing a product increases with volume.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Network effects occur when more people using a product or service make it more valuable to others, increasing the chance that they will also use it. This creates a positive feedback loop that can lead to exponential growth in the network, and is a key characteristic of many successful tech companies.

Network Effects Exist When the Likelihood of Consumers Purchasing a Product