Which of the Following Is an Advantage of Making a New

question 42

Multiple Choice

Which of the following is an advantage of making a new generation of technology backward compatible?

• A) Consumers will have to buy completely new complements.
• B) Consumer switching costs may be lower because they anticipate using their existing complements.
• C) It allows a firm to reap the benefits of cannibalization.
• D) It is typically less expensive to make a new generation of technology backward compatible than to make it incompatible.

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