Why do economies of scale and monopoly power exist with network goods? a Many small firms must develop to serve all of the consumers willing to pay for access to the network good, so their costs are driven down. b Network goods require a group of sellers working together and this cooperation reduces the firms' cost per unit. c Just as the value of a network good decreases to each user as the total number of users increases, so does the long run average cost decrease as output increases. d As the number of people connected to a network increases, the greater the benefits each person gets and the smaller the cost per unit to supply.
