What Advice Would You Give to a Firm That Wants

question 26

Multiple Choice

What advice would you give to a firm that wants to exploit network effects?

• A) Charge heavy license fee for new technology.
• B) Refrain from using technical standards.
• C) Create incentives for other firms to develop complementary products.
• D) Do not use aggressive marketing strategies for killer applications.
• E) Increase switching costs.

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Definitions:

Scientific Theories

Thoroughly validated interpretations of particular facets of the natural world, grounded in an evidential base that has been consistently reaffirmed through both empirical observation and experimental procedures.

Well-Founded Predictions

Predictions made based on solid evidence or justified reasoning.

Real-World Applications

Practical uses of theoretical concepts, methods, or technologies in everyday life or professional practices.

Common Theme

A recurring subject or idea evident across different work or contexts.