Which describes the network effect?

Question: Which describes the network effect?

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The network effect is a phenomenon in which the value of a product or service increases as more people use it. For example, a social media platform becomes more attractive to new users when it already has a large and active user base. The network effect can create a positive feedback loop that enhances the growth and dominance of a product or service in the market. However, it can also pose challenges such as maintaining quality, compatibility, and security for the users.

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