ECON 1020 Lecture Notes - Lecture 40: Network Effect, Internet2, Fax
17 May 2017
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Explosion of entrepreneurship and the microprocessor, or microchip which bundles transistors on a piece of silicon innovation based on. It has helped create a wide array of new products and services and new ways of doing business: miniaturization of electronic circuits. Information technology: new and more efficient methods of delivering and receiving information using computers, fax machines, wireless phones, and the internet: new firms and increasing returns: Start-up firms: a new firm focused on creating and introducing a particular new product of employing a specific new production or distribution method: successful new firms often experience increasing returns. Increasing returns: an increase in a firms output by a larger percentage than the percentage increase in its inputs. Increasing returns boost labour productivity and lower per-unit production costs. Both emerging firms and established firms can exploit several different sources of increasing returns and economies of scale:
