Which of the following are examples of situations with negative network externalities?

A) A crowded beach
B) A rare work of art
C) Clothing made to order
D) All of the above

Question

Which of the following are examples of situations with negative network externalities?A)  A crowded beachB)  A rare work of artC)  Clothing made to orderD)  All of the above

Mastique Hunter · Accepted Answer

Final Answer : D, Explanation :  A crowded beach is an example of a negative network externality because the more people that are on the beach, the less enjoyable it is for everyone. A rare work of art is not an example of a negative network externality because the more people that appreciate it, the more valuable it becomes. Clothing made to order is not an example of a negative network externality because the more people that order it, the more efficient the production process becomes.

Which of the following are examples of situations with negative network externalities?

A) A crowded beach
B) A rare work of art
C) Clothing made to order
D) All of the above

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