Which statement is TRUE?
A) Network goods rarely ever face new competition.
B) Network goods are usually sold by monopolistically competitive firms.
C) Network goods might lose their dominance over time.
D) Companies producing network goods compete "in the market," not "for the market."

Question

Quizplus · Accepted Answer

Network goods may lose their dominance over time due to changes in technology or market conditions. This is evidenced by the decline of companies like MySpace and Friendster, which were once dominant in the social media networking space. However, it is not true that network goods rarely face new competition (A) or that they are usually sold by monopolistically competitive firms (B). Additionally, while companies producing network goods may focus on competing in the market rather than for the market, this is not a defining characteristic of such goods (D).

Which Statement Is TRUE