Two features of music markets are:
A) predatory pricing and standard wars.
B) predatory pricing and network goods.
C) network goods and standard wars.
D) merit goods and network goods.

Question

Quizplus · Accepted Answer

Music markets often involve the concept of network goods, where the value of a product increases as more people use it (in this case, listen to or purchase the music). In addition, there can be standard wars as different formats (e.g. CD, MP3, streaming) compete for dominance, which is related to the concept of network goods. Predatory pricing is not unique to music markets and is not directly related to either network goods or standard wars. Merit goods, which have positive externalities and may be underconsumed in a free market, do not seem to be particularly relevant to music markets.

Two Features of Music Markets Are