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

question 227

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 in computer keyboards today) .This phenomenon is called

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

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Definitions:

Brokerage Commission

A fee charged by a broker for executing a transaction or providing specialized services.

Accrued Interest

Interest that has accumulated over time but has not yet been paid or received.

Equity Method

An accounting technique used to record investments in other companies where significant influence exists but control does not.

Fair Market Value

The price at which an asset would sell under normal market conditions, reflecting the value between willing buyers and sellers.