A Standard Which Came to the Market First, Such as the QWERTY

question 72

Multiple Choice

A standard which came to the market first, such as the QWERTY letter layout in typewriters, can become entrenched (this layout is still used for computer keyboards today) .What is this phenomenon called?

• A)network externalities
• B)path dependency
• C)sunk cost
• D)comparative advantage

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Definitions:

Dividend

A portion of a company's earnings distributed to its shareholders as a return on investment.

Rate Of Yield

A financial metric that calculates the amount of profit or loss an investment generates, relative to its cost.

Preferred Stock

A type of stock that offers dividends and/or liquidation preference over common stock.

Par

The face value of a bond or stock, or the standard level for a currency.