In network industries in which monopolies can be created if network effects are strong, interconnection increases competition and decreases deadweight loss.

Question

Quizplus · Accepted Answer

Interconnection in network industries allows different networks or services to work together, increasing competition by providing consumers with more choices and reducing the monopolistic power of any single network, which in turn decreases deadweight loss by improving efficiency and resource allocation in the market.

In Network Industries in Which Monopolies Can Be Created If