How network externalities affect firm operating strategies

Assignment Help Microeconomics
Reference no: EM13183647

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, one internet business 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: EM13183647

Questions Cloud

Relation btwn marginal product of labor and marginal cost : When the firm increases labor input, which of the following is correct about the relationship between marginal product of labor and marginal cost? Answer If marginal product is increasing, marginal cost will be decreasing. Marginal cost is equal t..
Calculate the total manufacturing costs : Calculate the total manufacturing costs and the cost per unit of the windows produced during the month of March (using the activity-based costing approach).
Explain definition of a limited-function merchant wholesaler : Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great servi..
State naturally occurring hydrogen and what percentages : When H2 gas is formed from naturally occurring hydrogen, what percentages of the molecules have molecular weights of approximately
How network externalities affect firm operating strategies : 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..
What is the structure of the molecular formula : The molecular formula is at C6H12O. What is the structure?, In the IR there is a peak at: 2960, 2930, and 2860 (CH stretch), a small peak at 2720, and a strong peak at 1725(carbonyl stretch C=O)
Why might a country with a fixed exchange rate contemplate : Suppose that you are a government official in charge of your country's fiscal policy. The country maintains a flexible exchange rate system. You are asked by your country's citizens to use fiscal policy alone to expand the country's..
Calculate the number of hours of direct labor : Calculate the number of hours of direct labor used during November and actual manufacturing overhead costs incurred during November totaled $166, 425. Calculate the amount of over- or underapplied overhead for November.
State the hydronium ion and the hydroxide ion : What is their role in this reaction? In the case of this particular example that you watched, where would each of these ions have come from?

Reviews

Write a Review

Microeconomics Questions & Answers

  Improve access to medical care

improve life style decsisions by reducing smoking, alcohol consumption, and drug use, imporve overall educational attainment so people can better follow the advice from the medical community.

  Reducing poverty and improving human welfare

Discuss why is increasing per capital income necessary but not sufficient for broadly dipping poverty and improving human welfare?

  State the law of diminishing marginal utility

produce the product at the lowest variable cost and sell as many as you can at the highest acceptable price. produce the product at the lowest fixed cost and sell as many as you can at highest acceptable price in the marketc. produce the product at ..

  Economy fundamentals

Which is not a factor of production? Which is not one of the five fundamental questions that an economy must deal with?

  Describe how the ice cream industry fits the oligopoly model

Describe how the ice cream industry fits the oligopoly model and, how does the government influences oligopolistic behavior and do oligopolists always compete on the basis of price?

  Calculations of price discrimination

There is the firm that has pricing control of its output and is capable to identify its consumers in two groups. The total quantity demanded for its output is the summation of quantity demanded by the two groups,

  Determining total cost function

A Firm has total cost function given by following: What is the Total fixed cost when Q = 100? And Average fixed Cost when Q=100?

  Determining alternative wage

Consider a sharecropper whose contract calls for him to receive ¾ of the output produced in the farm on which he works. Suppose that the value of the marginal product of labor on the shared cropped land is given by 80-L. Where L stands for hours o..

  Consumer are spending big time

A HEADLINE article in the text is titled Consumer are Spending Big Time. Determine which of the following is most likely to happens a result of increased consumer spending?

  Five forces framework

The costs of manufacturing steel declined substantially from building a conventional hot rolled steel mill down to new mini mill technology that need only scrap metal,

  The emergence in the asia/pacific region

A key year for them is 2015, when Southeast Asia's Open Sky Agreement comes into effect, allowing unlimited flights to all 10 ASEAN members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

  Important information-market structure

What is the source of these profits? Upon patent expiration, numerous rival drug companies offer generic versions of the drug to consumers.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd