Which of the following best explains why monopolies or oligopolies tend to dominate the market for network goods? I. Their products are the most likely to be compatible with other products. II. They produce the "best" products in terms of quality and compatibility. III. The power of coordination is so strong that monopolists and oligopolists can dominate the market even when they charge prices higher than their competitors.

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Quizplus · Accepted Answer

Monopolies or oligopolies tend to dominate the market for network goods because of the power of coordination. Even if they charge higher prices than their competitors, their strong coordination allows them to dominate the market. Additionally, their products are more likely to be compatible with other products, which makes them more attractive to consumers. However, it is not necessarily true that they produce the "best" products in terms of quality and compatibility.

Which of the Following Best Explains Why Monopolies or Oligopolies