When the value of a product to each user, including existing users, increases due to an increase in the total number of users-as in the case of Facebook-we refer to this as

A) income transfer.
B) price discrimination.
C) simultaneous consumption.
D) network effects.

Question

Jaennard Ger-El Vinuya · Accepted Answer

Final Answer : D, Explanation :  This phenomenon is known as network effects, where the value of a product or service increases for both new and existing users as more people use it.

When the value of a product to each user, including existing users, increases due to an increase in the total number of users-as in the case of Facebook-we refer to this as

A) income transfer.
B) price discrimination.
C) simultaneous consumption.
D) network effects.

Definitions

Learning Objectives

Learning Objectives

Related questions

When the value of a product to each user, including existing users, increases due to an increase in the total number of users-as in the case of Facebook-we refer to this asA) income transfer.B) price discrimination.C) simultaneous consumption.D) network effects.

Definitions

Learning Objectives

Learning Objectives

Related questions

When the value of a product to each user, including existing users, increases due to an increase in the total number of users-as in the case of Facebook-we refer to this as

A) income transfer.
B) price discrimination.
C) simultaneous consumption.
D) network effects.