People's willingness to buy the PC or Mac format of computer software depends on how popular the software format is among other consumers. This is an example of
A) a cartel.
B) an opportunity cost.
C) a network effect.
D) the prisoners' dilemma.

Question

Quizplus · Accepted Answer

The statement describes a network effect, which occurs when the value of a product or service increases as more people use it. In this case, the popularity of a software format affects a consumer's willingness to purchase it, creating a positive feedback loop that reinforces the dominant format.

People's Willingness to Buy the PC or Mac Format of Computer