________ present(s) a barrier to entry in the video game console market.
A) Economies of scale
B) Ownership of a scarce resource
C) Network externalities
D) A government franchise

Question

Quizplus · Accepted Answer

Network externalities create a barrier to entry in the video game console market because they make it difficult for new entrants to compete with established players. Network externalities occur when the value of a product or service increases as more people use it. In the case of video game consoles, this means that consumers are more likely to purchase a console that is already popular, because they will have more people to play with. This makes it difficult for new entrants to gain market share, as they will have to convince consumers to switch from their existing consoles.

________ Present(s) a Barrier to Entry in the Video Game