Antitrust authorities have a difficult time with network goods because:
A) they know that with network goods, only a few firms will always dominate the market.
B) profits tend to be higher in network markets, and thus firms are willing to fight harder.
C) when monopolies exist, there is no competition to help lower prices.
D) increased competition can easily lead to corruption in network markets.

Question

Quizplus · Accepted Answer

Network goods refer to products or services where the value increases as more people use it, and the dominance of a few firms is often a natural result of this. Antitrust authorities struggle with this because they typically aim to promote competition and prevent monopolies, but in network markets, a monopoly or oligopoly may be the most efficient outcome.

Antitrust Authorities Have a Difficult Time with Network Goods Because