Use the following statements to answer this question: I. A network ext

Use the following statements to answer this question: I. A network externality is a situation in which each individual’s demand depends on the purchases of other buyers. II.

Network externalities are mainly positive effects resulting from the actions of others, while ordinary externalities are mainly negative effects resulting from the actions of others. A) I and II are true.
B) I is true and II is false.
C) I is false and II is true.
D) I and II are false.

ANSWER

B