If Network Externalities Exist in an Industry,the ________ Firm to Enter

question 98

Multiple Choice

If network externalities exist in an industry,the ________ firm to enter the market is often the one that succeeds in dominating the industry.

• A) first
• B) second
• C) third
• D) fourth
• E) fifth

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Definitions:

Daily Profit

The financial gain a business makes in a single day, calculated by subtracting total expenses from total revenue for that day.

Marginal Costs

The advance in complete cost due to the manufacturing of one additional unit of a good or service.

Cournot Duopolists

Firms in a duopoly market structure that base their competition strategies on the quantity of output, assuming the reaction of the other firm to find an equilibrium.

Demand for Wine

The desire and willingness of consumers to purchase wine at various prices, influenced by factors such as income, tastes, and substitutes.