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How do the different cost structures arise

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Question: a. How is the cost structure in a software firm (and many other IT firms) different from traditional firms (fixed, average, and marginal cost)? How does that impact their price and quantity decisions?

b. How do these different cost structures arise? Explain what a natural monopoly is and describe how these cost structures might lead to natural monopolies even in the absence of patents.

Reference no: EM131852949

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