True or False:

1. All network externalities act to increase consumer demands for products.

2. The area of communications often exhibits positive network externalities.

3. The bandwagon effect can apply to the “hot” toy during the Christmas shopping season.

4. Whether a good is subject to positive or negative network externalities from congestion can depend on a consumer’s preferences.

5. Switching costs can be a significant barrier to new entrants in an industry.

6. When significant positive network effects are present, oligopoly is a common market structure.