Network effects occur is the costs of production are lower than the costs of production

Which of the following statements about capital markets is true?

A) At one time, the U.S. capital market was larger than all other capital markets combined, but that is no longer the case. B) The U.S. capital market is currently larger than all other capital markets combined. C) The largest capital markets in the world today are in East Asia and Latin America. D) There are currently large capital markets in Europe, but none in Asia.

Cost-reduction generate

a. Increases in long-run profitability b. Increases in long-run profitability only if the cost reduction is difficult to imitate c. Increases in product differentiation d. Reduction in competitive intensity