In the long run, interconnection in network industries creates a _____ environment that leads firms to _____.
A) less competitive; cut costs
B) less competitive; raise prices
C) more competitive; cut costs
D) more competitive; raise prices

Question

Quizplus · Accepted Answer

Interconnection in network industries typically leads to a more competitive environment because it allows more firms to participate and compete in the market. This increased competition often forces firms to cut costs in order to remain competitive and attract customers.

In the Long Run, Interconnection in Network Industries Creates a _____