Facebook Is by Far the Largest Social-Networking Website in the World.Explain

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The Answer is A network externality exists when the number of customers who purchase a good or use it influences the quantity demanded.The more people who use Facebook and the more often they use it,the more valuable Facebook is to any one user.Once a large network of people use Facebook,it is very valuable to each user.A rival trying to compete with Facebook will likely have a smaller network of people using its website.None of Facebook's users will find it in their interest to switch to the rival's website because Facebook has a larger network of users and is more valuable.Therefore,it will be difficult for a rival to compete effectively with Facebook.

Facebook Is by Far the Largest Social-Networking Website in the World.Explain

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Facebook Is by Far the Largest Social-Networking Website in the World.Explain

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified