All but One of the Following Have Been Suggested by Some

question 220

Multiple Choice

All but one of the following have been suggested by some economists as possible consequences of path dependency and switching costs.Which of the following is not a possible consequence of path dependency and switching costs?

• A)Consumers may get locked into using products with inferior technology.
• B)market failure
• C)diseconomies of scale
• D)Government intervention may be necessary in affected markets in order to improve economic efficiency.

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Definitions:

Actual Cost

The real, total expenditure incurred in acquiring an asset, completing a project, or executing a transaction, including all relevant expenses.

Synergistic Benefits

The enhancements or improvements in performance, value, or effectiveness resulting from the merger or collaboration of two entities or systems.

Incremental Value

The additional benefit or cost that arises from a specific decision or action compared to an alternative.

Equity-Financed

A way of raising capital through the sale of shares in the company, thus granting shareholders partial ownership.