Due to the network externalities in the smartphone market, we would expect this market to
A) overproduce game consoles.
B) be highly concentrated.
C) be efficient.
D) be serviced by a natural monopoly.

Question

Quizplus · Accepted Answer

Network externalities in the smartphone market lead to a situation where the value of a product increases as more people use it. This often results in a highly concentrated market where a few large firms dominate because they can offer more value to users through a larger network of users.

Due to the Network Externalities in the Smartphone Market, We