When referring to Network Effects, the below graph depicting the value of a product or service relative to the number of users indicates that:

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When referring to Network Effects, the below graph depicting the value of a product or service relative to the number of users indicates that:

image.png

Number of users is likely to stop increasing with time

After a certain period of time the value will start decreasing.

Users will start leaving the product or service after incidents of congestion

After a certain period of time the value will reach a plateau but won$$t decrease.