Network externalities are often:
A)separate from positive feedback.
B)a reason for natural monopolies.
C)less likely to occur in the communications or technology industries than they are in other industries.
D)not likely to move toward market domination.

Question

Quizplus · Accepted Answer

Network externalities can create a situation where a single firm gains significant market power due to the high costs of switching to a different network for consumers. This can lead to natural monopolies in industries where network effects are particularly strong, such as social media platforms or operating systems.

Network Externalities Are Often