Positive Network Effects Are Often Viewed as a Two-Edged Sword

Positive network effects are often viewed as a two-edged sword for firms because they:

A) increase the probability of higher market share,but make it easier to raise prices.
B) increase the probability of lower market share,while making it easier to raise prices.
C) increase the probability of higher market share,but limit the ability to raise prices.
D) decrease the probability of higher market share,but make it easier to raise prices.

Correct Answer:

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