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Since Its Founding in 331 B

Question 5

Multiple Choice

Since its founding in 331 B.C.E., the city of Alexandria has been a center of trade for the Mediterranean countries, as well as the Middle Eastern countries. Part of this is due to geography, but it is also due to the network effect. What is the source of the network effect?


A) Ships want the best harbor available.
B) There is a lot of contestability for ports.
C) There are economies of scale due to a concentration of trade.
D) Merchants want to maximize trading opportunities.

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