With Reference to High-Technology Industries, Which of the Following Statements

question 24

Multiple Choice

With reference to high-technology industries, which of the following statements is true about technical standards?

• A) They emerge because there are economic benefits associated with them.
• B) They cause compatibility problems between products and their complements.
• C) They can create a lot of confusion in the minds of consumers.
• D) They often result in higher production costs.
• E) They increase the risks associated with supplying complementary products.

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments and leading to a situation where economic profit equals zero.

Just Tangent To

A condition where two curves meet at only one point without intersecting, often used in the context of optimizing problems.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing to buy at each price.

New Firms Enter

The process by which new companies start operations in a market, often increasing competition and innovation within the industry.