Although Some Economists Believe Network Externalities Are Important Barriers to Entry

question 224

Multiple Choice

Although some economists believe network externalities are important barriers to entry, other economists disagree because

• A)they believe that the dominant positions of firms that are supposedly due to network externalities are to a greater extent the result of the efficiency of firms in offering products that satisfy consumer preferences.
• B)they believe that most examples of network externalities are really barriers to entry caused by the control of a key resource.
• C)network externalities are really negative externalities.
• D)they believe that the dominant positions of firms that are supposedly due to network externalities are to a greater extent the result of economies of scale.

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Definitions:

Bernardus Gelduinus

A sculptor of the Romanesque period, known for his work on the ambulatory capitals at the Basilica of Saint-Sernin, Toulouse.

Church Building

A structure designed for Christian worship and other religious activities, often characterized by symbolic architecture and sacred adornments.

Romanesque Period

An architectural and artistic period from approximately 1000 AD to the rise of the Gothic style in the 12th century, characterized by semi-circular arches, robust structure, and extensive use of stone.

Byzantium

Refers to the Eastern Roman Empire from the foundation of Constantinople in 330 A.D. until its fall in 1453 A.D., also describing the empire's rich cultural and artistic heritage.