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:

Decreasing-Cost Industry

An industry where input costs tend to fall as the industry as a whole expands its output.

LRAC Curve

The Long Run Average Cost curve shows the lowest possible average cost of production at different levels of output when all inputs are variable.

Entry

The act or process of entering into a market as a new supplier or producer, often facing barriers such as high startup costs or regulations.

Breaks Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.