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A network effect exists whenever

coolcat

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A network effect exists whenever

A network effect exists whenever

• a firm's willingness to produce a particular good or service is influenced by the costs of inputs it must utilize in order to manufacture the item.

• a firm's willingness to purchase a particular factor of production depends on the other types of inputs it utilizes to manufacture an item.

• a consumer's willingness to purchase a particular good or service is influenced by the prices of other complementary or substitute items.

• a consumerʹs willingness to purchase a particular good or service is influenced by how many others also buy or have bought the item.

Textbook

Economics Today: The Micro View

Edition: 19^th

Author: Miller

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meigsfla

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More solutions for this book are available here

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coolcat Author

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Thanks

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