Multiple Choice
(Figure: Externalities and Network Effects) Based on the graph, we see that if a consumer leaves the social network depicted
A) DP shifts left and the external benefit remains unchanged.
B) DP remains unchanged and the external benefit decreases.
C) DP shifts left and the external benefit decreases.
D) DP shifts left and the external benefit increases.
Correct Answer:

Verified
Correct Answer:
Verified
Q180: What is interconnection and how does it
Q181: One type of market segmentation is called
Q182: When a consumer joins a network, the
Q183: When a consumer joins a network, the
Q184: (Figure: Network Market Curves) Based on the
Q186: In the wireless industry, your smartphone device
Q187: As more people rely on a travel
Q188: In the market for a network good,
Q189: Home Internet service is often sold with
Q190: (Figure: Market Equilibrium for a Network Good)