Akamai Technologies is a dominant player in the content delivery network (CDN)market. Akamai is not very diversified (i.e.,is dependent on the CDN market). If rival CDN providers such as Limelight Networks and Level 3
Communications lower their basic CDN service prices,what would be Akamai's likely response?
A)raise its prices
B)do nothing since it is the market leader
C)exit the industry
D)lower its prices

Question

Quizplus · Accepted Answer

As a dominant player in the market, Akamai cannot afford to lose its market share to its rivals. If its competitors lower their prices, Akamai will likely respond by lowering its own prices to maintain its position. This will also help Akamai stay competitive and retain its customers. Additionally, Akamai has a strong financial position, which means that it can afford to offer competitive prices without losing its profitability.

Akamai Technologies Is a Dominant Player in the Content Delivery