Asked by
Barakat Oshodi
on Nov 26, 2024
Verified
Major Internet-related firms such as Google, Apple, Amazon, Microsoft, and Facebook each have an area of the market that they dominate. Which of the following is true about their interaction in the market?
A) They tend to act independently, paying little attention to what the other firms do.
B) They collude so that each firm retains a near-monopoly in a particular sector without facing threats from the other major firms.
C) They behave according to a price leadership model, with each firm taking a leadership role in the particular sector it dominates.
D) They compete fiercely, as each looks for ways to increase profits by expanding into rivals' markets.
Internet-related Firms
Companies whose primary business activities, products, or services are based on the internet, including e-commerce, online services, and digital platforms.
Near-monopoly
A situation where a single company or entity dominates an industry or market, facing little to no competition but not having complete control.
Market Dominate
The ability of a firm or a group of firms to control a substantial share of the market, influencing prices, and competition.
- Recognize the interaction strategies among major Internet-related firms and their market dynamics.
Verified Answer
AL
Learning Objectives
- Recognize the interaction strategies among major Internet-related firms and their market dynamics.