Question

Network effects are: increases in the value of a product to each user, including existing users, as the total number of users rises. reductions in per unit production cost as firms learn by doing. increases in demand resulting from products being mentioned positively in a television program. the change in real GDP resulting from a change in investment or government spending.

Answer 1

Network effects are A. increases in the value of a product to each user, including existing users, as the total number of users rises.

Step-by-step explanation:

The network effect is a phenomenon whereby increased numbers of users improve the value of a product to each user.