00:01
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.
00:10
At the same time, one internet business, such as a grocery home delivery, have continually suffered steep losses regardless of scale.
00:17
Why? could lower transaction costs in e -commerce make it easier for small suppliers to complete? externalities are often an important aspect of demand for information goods and services.
00:29
The benefits to consumers of using software, participating in electronic markets, or using instant messaging increase with the number of other users.
00:40
How might network externalities affect firm operating strategies? supply of information goods such as software's generally requires a lot of fixed investment in the beginning, and the average cost declines till the output reaches a considerable percentage of the whole market demand.
00:59
In other words, the market structure in the case of information goods is such that it can accommodate only information, only a few firms producing at the output level at which their ac, their average cost, is lowest...