Question

Akamai Technologies is a dominant player in the content delivery network (CDN) market. Akamai is not very diversified (i.e., is dependent on the CDN market). If rival CDN providers such as Limelight Networks and Level 3 Communications lower their basic CDN service prices, what would be Akamai's likely response?

a. Raise its prices

b. Do nothing since it is the market leader

c. Exit the industry

d. Lower its prices

Answer

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