Network Effects and Simultaneous Consumption Tend to Foster the Development

question 2

Multiple Choice

Network effects and simultaneous consumption tend to foster the development of

• A) pure competition.
• B) monopoly power.
• C) net social benefits.
• D) allocative efficiency.

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Definitions:

Deregulation

The process of reducing or eliminating government oversight and rules in various industries to foster a more free-market environment.

Efficiency Gains

Improvements in the use of resources that allow for more output without increasing the input.

Natural Monopoly

A market condition in which a single firm can provide a product or service at a lower cost than any potential competitors, often due to economies of scale.