Consumers Will Bear the Costs of Switching Technologies If

question 2

Multiple Choice

Consumers will bear the costs of switching technologies if:

• A) the benefits of adopting the new technology outweigh the costs of switching.
• B) switching costs are substantial.
• C) the new products are packaged attractively.
• D) there is a lack of complementary products.
• E) the new technology is advertised subtly.

---

Definitions:

Mental Accounting

A psychological phenomenon where people treat money differently depending on its origin, intended use, or other subjective criteria.

Gold Futures

Contracts to buy or sell gold at a future date at a price that is agreed upon today, used for speculation or hedging.

Conservatism

In finance, it refers to a risk-averse approach to investing or managing assets, prioritizing safety and preservation of capital.

Beliefs

The conviction or acceptance that something exists or is true, especially without proof, often informing decision-making processes in various contexts, including investing.