Question

How do network externalities affect barriers to​ entry? Network externalities

A. reduce barriers to entry because production becomes more efficient.
B. serve as barriers to entry because one firm can supply at lower average cost.
C. serve as barriers to entry because government regulations prevent entry.
D. serve as barriers to entry because new products are less useful.
E. reduce barriers to entry because consumers are more satisfied.

Answer 1

E. reduce barriers to entry because consumers are more satisfied.

Step-by-step explanation: