Question

Which of the following businesses is most susceptible to negative network effects? Group of answer choices Moonglow Shoes produces a line of lightweight running shoes that are endorsed by an Olympic gold medalist. Clover Technologies produces computer processing chips and sells them to a variety of manufacturers for use in smartphones and other devices. Pics Match is a social media platform where users upload photos to the site and are matched with other users who have taken similar photos. Green Tools manufactures solar powered gardening implements and sells them online.

Answer 1

Pics Match is the only business sensitive affected by network effect

Step-by-step explanation:

Moonglow Shoes: The sales are based on answers collected before the launch of the product, and the sales are based on the reputation of the Olympic medalist. The number of users does not change the value of Moonglow Shoes. Clover Technologies: Since the company is B2B (Business to Business), the increasing of final users does not increase the value of the products sold by Clover Technologies. Pics Match: The relevance of the business is based on how much users are enthusiastic about the social network and promote it to other users. The value proposition of Pics Match increases according to the number of users. Green Tools: The increase of users does not increase the subjacent value of products sold by Green Tools, even though the sales channel is internet