Why cost structure associated with many kinds of information

Assignment Help Microeconomics

Reference no: EM13221313

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? As noted in Chapter 3, 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: EM13221313

Questions Cloud

What will be the economic profit for the bookstore : Campus Bookstore is the only textbook supplier in the town, a profit-maximizing business. Assume that the marginal and average total cost for each book is $25. Customer Reservation Price Total Revenue Marginal Revenue A 70 B 65 C 60 D 55 E 50 F 45..

Revenues can be recognized on a modified accrual basis : What criteria must be met before revenues can be recognized on a modified accrual basis? For example, when are property taxes and sales taxes included in revenues? Please use an example of a government entity that you are familiar with in your respon..

Explain crystallize in a cubic closest packed structure : crystallize in a cubic closest packed structure. Use the density of silver (10.5 g/cm3) and its molar mass (107.9 g/mol) to calculate an approximate atomic radius for silver

What are the dns resolvers and where are they located : What are the DNS Resolvers and where are they located?

Why cost structure associated with many kinds of information : 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 s..

Discuss major issues that must be considered in designing : Discuss the major issues that must be considered in designing processes and the key activites that must be accomplished.

Compute the volume of co formed at a pressure : ignited with a sample of oxygen gas having a volume of 35.0 liters at 31oC and 1.25 atm to produce CO2 and H2O vapor. Calculate the volume of CO2 formed at a pressure of 2.50 atm and a temperature of 125oC.

Whether there are long-run increasing returns scale in bank : The last decade has witnessed an unprecedented number of mega-mergers in the banking industry: Bank of America's acquisitions of Fleet Bank, MBNA, and U.S. Trust; Bank of New York's acquisition of Mellon Financial; and Wells Fargo's acquisition of..

Determine the number of grape and the number of apple pies : Determine the number of grape and the number of apple pies that will maximize revenues if the couple working together can make an apple pie in six minutes and a grape pie in three minutes. They plan to work no more than 60 hours.

User Account

All Pages