Question 2: The concept of _____ is based on the idea that the value of a network will increase when others share it, and refers to the ways that higher or wider usage of certain products or services confers greater value for all users. A Network webbing B Network effect C Intra-network

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter22: Contemporary Issues In The U.s. Economy
Section: Chapter Questions
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Question 2:

The concept of _____ is based on the idea that the value of a network will increase when others share it, and refers to the ways that higher or wider usage of certain products or services confers greater value for all users.

 
A

Network webbing

B

Network effect

C

Intra-network

Expert Solution
Step 1

Because some people use network which is used widely,we can say that when some product is used widely,it is used by others also.

This is known as network effect,because network is shared by others.This network affects others.

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