Some firms in the technology sector have achieved economies of scale because costs have been reduced by:

Question

Quizplus · Accepted Answer

Network effects occur when a product or service becomes more valuable as more people use it. This can lead to economies of scale, as the cost per unit of the product or service decreases as more people use it. Therefore, firms in the technology sector have achieved economies of scale due to network effects, not price discrimination (A), rent-seeking (B), or fair-return pricing (D).

Some Firms in the Technology Sector Have Achieved Economies of Scale