In network economics, the value of a commercial software vendor's software products:

is unrelated to the number of people that use them.

increases due to higher marginal gain in output.

increases as more people use them.

decreases according to the law of diminishing returns.

decreases as more people use them.

Question

Business

Scarlett Harris

27 June, 21:01

In network economics, the value of a commercial software vendor's software products:

is unrelated to the number of people that use them.

increases due to higher marginal gain in output.

increases as more people use them.

decreases according to the law of diminishing returns.

decreases as more people use them.

+2

Answers (1)

Know the Answer?

Calvin Fischer · Answer 1

increases as more people use them.

Explanation:

Network economics refers to a business that uses network effect. It is also called Netromix. The value of a good is increased as the number of buyers increases.

The business will benefit from feedback received by customers that use their products.

For example online services like LinkedIn and Twitter benefit from this type of framework. The more users that use these software th more the business gains.