When a New Technology with Only a Moderate Functionality Advantage

question 32

Multiple Choice

When a new technology with only a moderate functionality advantage is made compatible with an existing technology's installed base and complementary goods,then the new technology may offer _____ overall value to users.

• A) lesser
• B) greater
• C) zero
• D) limited

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Definitions:

Fixed Manufacturing Overhead

Costs related to manufacturing that do not change with the level of production, such as salaries of supervisors and rent for factory space.

Contribution Margin

The difference between sales revenue and variable costs of production, indicating how much revenue contributes towards covering fixed costs and generating profit.

Financial Advantage

The benefit or superiority that a business holds over its competitors in financial terms, such as higher profit margins or lower costs.

Purchasing Part

The process or activity involved in acquiring materials, components, or parts necessary for production or operation.