Asked by Avery Villa on May 23, 2024
Verified
Network effects and simultaneous consumption tend to foster the development of
A) pure competition.
B) monopoly power.
C) net social benefits.
D) allocative efficiency.
Monopoly Power
The ability of a monopoly to set or influence prices within the market due to the lack of competitive pressures.
Net Social Benefits
The total benefits from an action or policy minus the total costs, considering both direct and indirect effects on society.
- Determine the influence and function of network effects and concurrent consumption in promoting monopolistic dominance.
Verified Answer
MM
Marlen MarreroMay 25, 2024
Final Answer :
B
Explanation :
Network effects and simultaneous consumption can lead to monopoly power because as more users join a network or platform, the value of the service or product increases for all users, potentially leading to a dominant market position for the provider.
Learning Objectives
- Determine the influence and function of network effects and concurrent consumption in promoting monopolistic dominance.