Network externalities
a. explain why switching costs fall as the size of a network increases
b. are the service-industry equivalent of natural monopolies in goods-producing industries
c. are more important in the short run than in the long run
d. help explain why monopolies often do not last for very long
e. can explain the dominance of existing firms in some industries
E
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If one nation is able to produce a good at a lower opportunity cost than another, it has
A) an absolute advantage in that good. B) a comparative advantage in that good. C) a productivity advantage in that good. D) a technological advantage in that good.
Higher interest rates will tend to reduce aggregate demand, other things being equal
a. True b. False Indicate whether the statement is true or false