The short-run supply curve for a network good is horizontal.

Question

Quizplus · Accepted Answer

The concept of a "short-run supply curve" being horizontal typically applies to perfectly competitive markets with fixed capacity in the short run, not specifically to network goods. Network goods are characterized by network effects, where the value of the good to a user increases with the number of other users. The supply curve for network goods would not inherently be horizontal; it would depend on the cost structure of providing the good and the extent of the network effects.

The Short-Run Supply Curve for a Network Good Is Horizontal