When an increase in the size of a network benefits or harms members of the network regardless of anything occurring with connected networks, this is known as
Added by Charles J.
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The question refers to a situation where the size of a network affects its members independently of other networks. Show more…
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Network externalities are important because Choose one: (A) increasing membership increases the benefits to other members, which increases quantity demanded (B) increasing benefits imposes a negative externality on existing members (C) as the network size grows, the services become cheaper (D) their large networks inflict negative externalities on potential competitors
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