Network effects and simultaneous consumption tend to foster the development of
A) pure competition.
B) monopoly power.
C) net social benefits.
D) allocative efficiency.

Question

Quizplus · Accepted Answer

Network effects and simultaneous consumption often lead to the concentration of market power in a few firms, as consumers are more attracted to the products or services of the dominant players. This concentration can create barriers to entry, discourage innovation, and reduce consumer surplus, all characteristics of a monopoly power.

Network Effects and Simultaneous Consumption Tend to Foster the Development