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Question
The market for social-networking website services is characterized by network externalities because
a. the less other people are using the website, the more any one person enjoys it.
b. the number of other people using the website has no effect on any one persons enjoyment of it.
c. the more other people are using the website, the more any one person enjoys it.
d. a person needs a computer network to access a social-networking website.
e. people are less likely to be hired by an employer if they use social-networking websites.
Answer
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Related questions
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What is the long-run consequence of a price ceiling law?
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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