Some Economists Have Suggested That Network Externalities Result in Consumers

question 189

Multiple Choice

Some economists have suggested that network externalities result in consumers being locked into the use of products with inferior technologies.Economists Stan Leibowitz and Stephen Margolis have studied cases that have been cited as examples of this and found

• A)there is no convincing evidence that the alternative technologies were superior.
• B)consumers sometimes do become locked into the use of products with inferior technologies.
• C)that in all of these cases network externalities resulted in market failure.
• D)that consumers use products with inferior technologies when their prices are lower than products with superior technologies.

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Definitions:

Counter-clockwise

A direction opposite to the typical forward movement of clock hands, often referenced in motor and machinery operations.

Phase Voltage

The voltage measured across a single phase in a multi-phase system, such as in three-phase electrical systems.

Coil Winding

The process of winding wire around a core or form to create an inductor or transformer, crucial in the manufacture of electric motors and other devices.

Delta Configuration

A method of connecting electrical devices in a triangle-like circuit, commonly used in three-phase systems.