Consumers Will Bear the Costs of Switching Technologies When

question 40

Multiple Choice

Consumers will bear the costs of switching technologies when

• A) the benefits of adopting the new technology outweigh the costs of switching.
• B) switching costs are substantial.
• C) switching costs are reimbursed by makers of a product.
• D) all of these choices.
• E) none of these choices.

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Definitions:

Personnel Expenses

Costs associated with employing personnel, including wages, benefits, training, and other related expenses.

Spending Variance

A metric that compares the actual cost of production against the budgeted or standard cost, highlighting over or under spending.

Materials

The physical commodities used in the production of goods, ranging from raw materials to fully fabricated components.

Spending Variance

The difference between the actual spending and the budgeted or planned spending amount in a given period.