Asked by Amber Harris on May 28, 2024
Verified
The standardization of software applications that people can easily share is an example of:
A) a positive network externality.
B) a negative network externality.
C) a network externality that can be positive or negative.
D) an innovation that does not carry a network externality.
Network Externality
A situation where the value of a product or service increases as the number of users expands.
Standardization
The process of developing and implementing technical standards to ensure the compatibility, safety, and quality of products and services.
Software Applications
Programs designed to perform specific tasks or functions for the user.
- Grasp the nature and consequences of network externalities in market dynamics and consumer choice.
Verified Answer
SR
Samuel RezendeJun 02, 2024
Final Answer :
A
Explanation :
The standardization of software applications that people can easily share creates a positive network externality as it increases the value of the software for each user as more people use it. This makes the software more popular and widespread, resulting in more users adopting it.
Learning Objectives
- Grasp the nature and consequences of network externalities in market dynamics and consumer choice.