Why have digital goods become so dominant? Think for example the music industry. a) There are clear direct network effects as a result of digitalization. b) Digital goods are non-rival. c) Some costs are lower for digital goods than for traditional goods.

Why have digital goods become so dominant? Think for example the music industry. a) There are clear direct network effects as a result of digitalization. b) Digital goods are non-rival. c) Some costs are lower for digital goods than for traditional goods.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A3 True/false

Why have digital goods become so dominant? Think for example the music industry.
a) There are clear direct network effects as a result of digitalization.
b) Digital goods are non-rival.
c) Some costs are lower for digital goods than for traditional goods.
d) Digital goods are sold at almost zero prices.

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