Network effects on the Internet:
A. help firms like Google and Facebook dominate their respective markets.
B. allow many firms to operate, making Internet markets highly competitive.
C. cause economies of scale to be exhausted quickly.
D. create a level playing field for all types of media, communication, and commerce on the
Internet.
Answer: A
You might also like to view...
If a firm knew every consumer's willingness to pay and could prevent arbitrage it could charge every consumer a different price. This practice is known as
A) first-degree transfer of consumer surplus, or perfect price discrimination. B) first-degree price discrimination, or perfect price discrimination. C) maximization of producer surplus, or perfect price discrimination. D) first-degree exploitation, or perfect price discrimination.
A discount bond involves
A) interest payments from the borrower to the lender periodically during the life of the loan. B) payment by the borrower to the lender of the face value of the loan at maturity. C) no payment of principal by the borrower to the lender. D) payment of interest by the borrower to the lender every six months during the life of the loan.