Which describes the network effect?
1. A platform becomes more useful as more people join and use it.
2. A platform can lose effectiveness if too many users are logged in
simultaneously.
3. A platform becomes more useful as its total computing power increases.
4. A platform becomes more useful as it is linked to more applications, I don't know this yet.
Answer - (1) "A platform becomes more useful as more people join and use it"
Description about Network Effect:
Network effect is a phenomenon where current users of a product or service benefit in some way when the product or service is adopted by additional users. This effect is created by many users when value is added to their use of the product. The biggest and most well-known example of the network effect is the Internet. The Internet is a network of networks where people connect with each other.
The network effect occurs with every new user joining the old network, thus, increasing the value for all existing users.
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