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March 30, 2017

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explain why the cost tructure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms. At the same time, some internet businesses such as grocery home deliveries have continually suffered steeplosses regardiless of scale. Explain why. Could lower transaction costs in e-commerce ever make it easier for small suppliers to compete?How migh network externalities affect firm operating strategies(pricing, output, and advertising) and firm size?

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