Increasing Returns to Adoption Imply That Technology Trajectories Are Characterized

question 35

Multiple Choice

Increasing returns to adoption imply that technology trajectories are characterized by _____,meaning that relatively small historical events may have a great impact on the final outcome.

• A) the ratchet effect
• B) the funnel effect
• C) corrugated anomalies
• D) path dependency

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Definitions:

Purchase Books

The act of buying books, typically for personal reading, study, or for adding to a collection.

Third-Degree Price Discrimination

A pricing strategy where a seller charges different prices to different consumer groups for the same product, based on their willingness to pay.

Marginal Cost Function

A mathematical expression that describes how the cost of producing one additional unit of a good or service varies with the quantity produced.

Reservation Price

The maximum amount a consumer is willing to pay for a good or service.