Why Is the Installed Base of Users of a Technology

question 38

Essay

Why is the installed base of users of a technology that requires complementary goods so important to a company's future success?

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Definitions:

Market Price

The existing rate at which a good or service is available for buying or selling.

Call Option

A financial contract granting the buyer the right, but not the obligation, to buy an underlying asset at a specified price within a certain period.

Exercise Price

The price at which an option holder can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.