What is a network good? How might a network good make it possible for a monopoly...

What is a network good? How might a network good make it possible for a monopoly to emerge?

Expert Solution

A network good is a product whose value increases as more and more people start using it. For example, Twitter and Facebook are network good. As these platforms have more and more subscribers the value of these products will increase. Thre will be more content and that new contents will attract more people to the platform.

How a network good makes it possible for a monopoly to emerge ??

Monopoly is created when there are huge barriers to entry. In a network good like Facebook which already has a huge network creates a much bigger content and as they are created by so many users the cost of such content for Facebook is Zero. But, if a new Social media platform comes in they will not have the benefit of a large consumer base. Making it difficult for them to create content and even costly.

Users will stick to those networks which have large consumer base and this will prevent any new entrant in the market. Making a monopoly.

Rahul Sunny answered 2 years ago

a. What conditions make price discrimination possible? b. A monopoly can sell its good in the...

a. What conditions make price discrimination possible? b. A monopoly can sell its good in the US, where the elasticity of demand is -2, and in South Korea, where the elasticity of demand is -4. Its marginal cost is $10. At what price does the monopoly sell its good in each country if resales are not possible?

what strategies are or might be effective to empower clients to make health decisions? How might...

what strategies are or might be effective to empower clients to make health decisions? How might these strategies also encourage clients to be accountable for their own health? Provide rationale for your response.

How is it possible that it is good for Canadian workers to be merged into a...

How is it possible that it is good for Canadian workers to be merged into a global labor pool where they must compete for jobs with workers on the other side of the globe that make less than ten percent of what an average Canadian worker makes? answer must be 150-250 words

MONOPOLY Firms clearly want to have a monopoly, or as much monopoly power as possible. (By...

MONOPOLY Firms clearly want to have a monopoly, or as much monopoly power as possible. (By Monopoly power I'm referring to the ability to control their price). After all, perfectly competitive firms can expect zero economic profit in the long run. Over the years, various products have been "given away" or "integrated" into other products as a way of using "predatory pricing" to keep competitors out of the market. Be sure to include the source/link.

How might actor-network theory promote the democratization of technoscience?

Jack Danielle Ltd. renders Network service to its customers. In order to make a good decision,...

Jack Danielle Ltd. renders Network service to its customers. In order to make a good decision, the management of Jack Danielle starts to collect its number of service and service cost (including fixed and variable costs) over the last nine months as follows: Month Number of Services Service costs ($) January 6,300 $28,150 February 7,500 $30,000 March 5,100 $23,300 April 4,250 $20,000 May 4,500 $22,000 June 3,310 $17,500 July 3,750 $18,000 August 5,500 $24,000 September 3,300 $17,400 Required: (a) Using...

Discuss that how it is possible that a company is good in solvency but poor in...

Discuss that how it is possible that a company is good in solvency but poor in liquidity? Justify your answer. Explain in 300 or more words.

Discuss that how it is possible that a company is bad in solvency but good in...

Discuss that how it is possible that a company is bad in solvency but good in liquidity? Justify your Answer with example. Explain in 300 or more words.

Consider how attitudes are formed and how they might be changed. Is it possible for individuals...

Consider how attitudes are formed and how they might be changed. Is it possible for individuals to identify counterproductive attitudes and change them? If so, what are some approaches that might work best? Is it possible to help others change negative, counterproductive attitudes as well? Consider how doing this might be different from addressing personal attitude changes. What can be done to make these changes long-lasting? (Note that a discussion of attitudes can relate to a discussion of values as...

Knowing what you know about how the line between good and evil is permeable, how might...

Knowing what you know about how the line between good and evil is permeable, how might you devise an anti-bullying intervention in an elementary school? give sources..

Question