**Discussion Question 13-11**Network effects give Internet firms a boost with respect to first mover advantages.This is because with network effects- whichever firm's network becomes the largest will become the most valuable to potential customers and will therefore attract even more users.- only firms with access to proprietary technology can form a network.- networks can be networked to create even more traffic and profits.- the first internet firm to establish a network has the most influence over any regulation.When network effects are at play, an increase in the number of people using a given product will shift the demand curve to- right and make it more elastic.- the right and make it more inelastic.- left and make it more inelastic.- left and make it more elastic.

The answer to the first question is A.Network effects are a phenomenon where the value of a product or service increases as the number of users increases. This is because users benefit from being able to connect with other users on the network. For example, a social media platform is more valuable to users if more of their friends and family are on it. The first firm to establish a network has a first-mover advantage because it can attract more users and become the dominant player in the market.The answer to the second question is B.When network effects are at play, an increase in the number of people using a given product will shift the demand curve to the right. This is because more people are willing to buy the product at a given price. The demand curve will also become more inelastic, meaning that consumers are less responsive to changes in price.For first question:A. Whichever firm’s network becomes the largest will become the most valuable to potential customers and will therefore attract even more users.For sencond question:B. the right and make it more inelastic.

Business

Economics

Network effects give Internet firms a boost with respect to first mover advantages. This is because with network effects O whichever firm's network becomes the largest will become the most valuable to potential customers and will therefore attract even more users. O only firms with access to proprietary technology can form a network. O networks can be networked to create even more traffic and profits. O the first internet firm to establish a network has the most influence over any regulation. When network effects are at play, an increase in the number of people using a given product will shift the demand curve to O right and make it more elastic. O the right and make it more inelastic. O left and make it more inelastic. O left and make it more elastic.

Network effects give Internet firms a boost with respect to first mover advantages. This is because with network effects O whichever firm's network becomes the largest will become the most valuable to potential customers and will therefore attract even more users. O only firms with access to proprietary technology can form a network. O networks can be networked to create even more traffic and profits. O the first internet firm to establish a network has the most influence over any regulation. When network effects are at play, an increase in the number of people using a given product will shift the demand curve to O right and make it more elastic. O the right and make it more inelastic. O left and make it more inelastic. O left and make it more elastic.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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. Compare the quantity and price of an oligopoly tothose of a monopoly
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