d. Now take into account that people will realize that the network is growing as price falls.
Question:
d. Now take into account that people will realize that the network is growing as price falls. What will happen if the number of computers demanded at pr on D3 is N3? Illustrate the new equilibrium, and explain why some economists say that network externalities give rise to a bandwagon effect in addition to a direct price effect.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
Question Posted: