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Suppose a firm faces potential demand from two customer bases, H and L, with high and low valuation of the firm's product, respectively.
3. Suppose a firm faces potential demand from two customer bases, H and L, with high and
low valuation of the firm's product, respectively. If the product has network
externalities and all type H customers are currently purchasing the product, then the
price that can be charged to L consumers ________.
A. increases with the number of H consumers
B. decreases with the number of H consumers
C. is independent of the number of H consumers
D. cannot be determined because the price charged to H is not known