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.

Reviews

Write a Review

Microeconomics Questions & Answers

  What is allocative efficiency but not productive efficiency

At its profit-maximizing output, a pure nondiscriminating monopolist achieves: neither productive efficiency nor allocative efficiency. both productive efficiency and allocative efficiency. productive efficiency but not allocative efficiency.

  Analysis of production and costs

Will firms in industries, in which high levels of output are necessary for minimum efficient scale, tend to have substantial degrees of operating leverage? Please explain.

  Question about capitalism and greed

During 1980's the movie Wall Street seemed to accurately capture themes of the day. Michael Douglas starred in movie as Gordon Gecko

  Describing law of diminishing marginal productivity

What is the law of diminishing marginal productivity? How does it differ from average productivity?

  Conduct an analysis of demand for organization product

Conduct an analysis of the demand for the organization product and or services by - Discussing the source of your numerical price and other data.

  Solving profit maximizing questions

During that summer, he charged $1.69 each gallon for unleaded gas during daytime & $2.59 each gallon at night,

  Can the country continue to afford deficits indefinitely

Assume that a country's real growth is 2 percent per year, while its real deficit is rising 5 percent a year. Can the country continue to afford such deficits indefinitely What problems might it face in the future

  Economic and socially efficient market outcomes

35 percent Turkey growers operate in a competitive, stable cost industry. This industry has reached a long run equilibrium at a price of $1 per pound of turkey

  Why do firms experience diseconomies of scale

Many suppliers experience economies of scale as output expands, which implies that long-run average costs are falling. At very high levels of production, however, many firms are likely to experience diseconomies of scale.

  Should students drink beer rather than tequila

Alcohol is illegal in dorms at ACME college. Why are students more likely to sneak in a couple bottles of, say, tequila, rather than cases of beer even though most would rather drink beer than tequila

  What are implications of such uncertainties for policymaker

Suppose you were in charge of designing the border security policies for airports, seaports, and roadways in the United States. How would you go about finding the optimal level of security, the optimal level of commercial trade and tourism, and th..

  What are the pros and cons of organizational technique

what is chain command and what are the pros and cons of organizational technique what bennefits are provided by the use of specific chain of command and what issues might result

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