Firms that provide network goods often become monopolies.

Name: Firms that provide network goods often become monopolies.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Network goods exhibit network externalities, where the value of the product increases as more people use it. This often leads to a situation where one or a few firms dominate the market, as a larger user base significantly enhances the product's value, discouraging competition and leading to monopolistic or oligopolistic structures.

Firms That Provide Network Goods Often Become Monopolies