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| Q. |
When users’ preferences exhibit network externalities, and if computer brands are differentiated and incompatible, then _ |
| A. | prices and profit levels decline with an increase in consumers’ preference toward the network size. |
| B. | prices and profit levels increases with an increase in consumers' preference towards the network size. |
| C. | price increases and profit level decreases with an increase in consumers' preference toward the network size. |
| D. | price declines while profit level increase with an increase in consumers' preference towards the network size. |
| Answer» A. prices and profit levels decline with an increase in consumers’ preference toward the network size. | |
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