A Significant Downside to Network Externalities Is That

question 15

Multiple Choice

A significant downside to network externalities is that

• A) there may be large switching costs to consumers for changing products so that consumers end up using products with inferior technologies.
• B) firms may network with unethical suppliers or distributors.
• C) the costs of hiring celebrity endorsements may be very high.
• D) there may be large switching costs to firms changing technologies.

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Definitions:

Current Income

Current Income signifies the revenue or income generated from investments or employment within a specified current period, typically considered for personal or business financial analysis.

Fair And Equitable

A principle requiring treatment that is reasonable, impartial, and balanced for all parties involved in an agreement or legal proceeding.

Impaired Claimants

Individuals who have a claim (usually in a legal or bankruptcy context) but whose right to collect or settle is limited or reduced.

Indubitable Equivalent

A term in bankruptcy law referring to a replacement of collateral that is unquestionably equal in value to the original collateral.