Facebook dominates as the premier social networking site with more than 500 million members. However, Google has recently released Google+, a social networking site that makes it easy to create circles of information just for your friends, parents, and professional life. The market for social networking is a(n):
A) interworked market.
B) contestable market.
C) intracompetitive market
D) separating-equilibrium market.

Question

Quizplus · Accepted Answer

The market for social networking can be considered a contestable market, as new entrants such as Google+ have the potential to disrupt the dominance of established players such as Facebook. The low barriers to entry and exit in this market also contribute to its contestability.

Facebook Dominates as the Premier Social Networking Site with More