What Are Switching Costs

question 113

Essay

What are switching costs?

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Definitions:

Agency Agreement

A legal contract in which one party (the agent) agrees to act on behalf of another party (the principal) in business transactions or other matters.

Terminate

To bring to an end or to conclude something such as an agreement, employment, or process.

Principal Duty

The main or most important obligation that a party has under a contract or agreement.

Reimburse

To pay back someone for expenses they have incurred.