When Users' Preferences Exhibit Network Externalities, and If Computer Brands

Multiple Choice

When users' preferences exhibit network externalities, and if computer brands are differentiated and incompatible, then ----------------

A) prices and profit levels decline with an increase in consumers' preference toward the network size.
B) prices and profit levels increases with an increase in consumers' preference towards the network size.
C) price increases and profit level decreases with an increase in consumers' preference toward the network size.
D) price declines while profit level increase with an increase in consumers' preference towards the network size.