(Last Word): Network Effects on the Internet

question 77

Multiple Choice

(Last Word) : 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.

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Definitions:

Restaurant Industry

A sector of the economy comprising establishments primarily engaged in preparing and serving meals, snacks, and beverages for immediate consumption.

Metropolitan Area

A region consisting of a densely populated urban core and its less-populated surrounding territories, sharing industry, infrastructure, and housing.

Monopolistically Competitive

A business environment defined by numerous companies offering products that are alike but not exactly the same, providing them with a certain level of influence over the market.

Pure Monopolist

A market scenario where a single firm is the sole provider of a product or service, without any close substitutes, giving the firm significant market power to influence prices.