An Advantage of Microsoft Windows Is Its Compatibility with the Widest

question 138

Multiple Choice

An advantage of Microsoft windows is its compatibility with the widest range of hardware and software. The dominance of Windows is self-reinforcing: hardware and software manufacturers ensure that their products are compatible with Windows in order to have access to the large number of Windows users. Which principle best describes this scenario?

• A) endowment effects
• B) endorsement effects
• C) economies of scale
• D) network externalities

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Definitions:

Ordinary Annuities

Ordinary annuities are a series of equal payments made at the end of consecutive periods over a fixed length of time.

Perpetuity

A financial term referring to a security or form of investment that pays an infinite series of cash flows with no end date.

Endowment Fund

A financial asset, in the form of donations, made to non-profit organizations that uses the generated income for a specific purpose.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounted cash flow analysis to assess the profitability of an investment.