1 reread the case study on user generated softwarewhy are, Ask an Expert

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1. Reread the case study on User Generated software.

Why are users willing to help create certain products even though few, if any, users are paid for their efforts? How does this make sense from an economic standpoint? How do you think these users identify opportunity cost?

2. The supply and demand curves do a good job modeling the relationship between price and quantity demand of a good. However externalities are not represented in these curves. Identify an externality; explain how the cost or benefit of the externality is distributed to users (or if it is not identify that as well).

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