1. Compare the major differences between the decreasing returns world and the increasing returns world. 2. Explain why the rule of increasing returns applies to e-commerce companies. 3. From the 2nd paper, titled 'Network Effects Aren't Enough', please discuss why 'Growing too fast too early' is one of the major reasons that network effects are not effective.
Added by James J.
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- The decreasing-returns world is the classical microeconomic environment where marginal returns and marginal productivity decline as you add more of an input. Key properties: - Diminishing marginal product: each additional unit of input gives smaller Show more…
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