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JADYN MONTGOMERY
on Nov 26, 2024

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Extensive network effects may drive a market toward natural monopoly because consumers tend to choose a common, standard product that everyone else is using.

Network Effects

The phenomenon where increased numbers of users or participants improve the value of a good or service.

Natural Monopoly

A situation where due to high fixed costs or other barriers, a single firm can supply a product or service to an entire market at a lower cost than what two or more firms could.

  • Examine how natural monopoly and network effects influence market behavior.
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Carlos MateoDec 03, 2024
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