How might network externalities affect firm operating size

Reference no: EM13235560

Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms (at the same time, some internet businesses such as grocery home deliveries have continually suffered steep losses regardless of scale. Explain why.) Could lower transaction costs in e-commerce ever make it easier for small suppliers to compete? Network externalities are often an important aspect of demand for information goods and services. (The benefits to customers of using software, participating in electronic markets, or using instant messaging increase with the number of other users.) How might network externalities affect firm operating strategies (pricing, output, and advertising) and firm size?

Reference no: EM13235560

Questions Cloud

Develop a model that will determine the total amount : Assume that you are about to deposit $1,000 in a passbook savings account that pays an annual interest of 4 percent. Develop a model that will determine the total amount of money you will have in the account at the end of the first year. Also def..

What is the deadweight loss and why it arise : A monopolist faces a market demand curve given by Demand: Q=70-P. The monopolist faces the following cost structure: C=0.25Q^2-5Q+200. What output level will the monopolist choose in order to maximize profits

Differentiate between coaching and mentoring : Provide an example to support how either of the two was used successfully in your current or past work life.

Describe the tipping point : Describe the "tipping point" where power turns into domination.

How might network externalities affect firm operating size : Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms (at the same time, some internet businesses such as grocery home deliveries

What is the internal energy of the gas : The internal energy of a gas is 547.J. The gas is compressed adiabatically, and its volume decreases by 125.cm3, what is the internal energy of the gas after the adiabatic compression

Find the firms profit maximizing price and quantity : The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units. Furthermore, she claims that 40 units is the firm's profit maximizing level of output.

Calculate the necessary amount of charge on the marble : You and a friend have been given the task of designing a display for the Physics building that will demonstrate the strength of the electric force, calculate the necessary amount of charge on the marble for a reasonable ramp angle of 15 degrees

Whether or not to prescribe the drugs for the patients : What would be the advantages and disadvantages of a regulatory system in which , rather than having the FDA merely published its opinions about the safety and efficiency of drugs and the allowed physicians

User Account

All Pages