The barrier to entry protecting a social site like Facebook is primarily
A) network effects.
B) economies of scale.
C) patents.
D) ownership of a scarce factor of production.

Question

Quizplus · Accepted Answer

Network effects are the primary barrier to entry for social sites like Facebook, as the value of the service increases with the number of users, making it difficult for new entrants to compete.

The Barrier to Entry Protecting a Social Site Like Facebook