Why is the short-run supply curve for a network good vertical?
A) It is limited to the capacity of the firm's fixed investment.
B) It is limited to the capacity of the firm's variable costs.
C) It is limited to the capacity of the firm's consumer demand.
D) It is limited to the capacity of the firm's pricing structure.

Question

Quizplus · Accepted Answer

The short-run supply curve for a network good is vertical because it is constrained by the firm's fixed investment, such as infrastructure or network capacity, which cannot be quickly adjusted in the short run.

Why Is the Short-Run Supply Curve for a Network Good