A Standard Which Came to the Market First, Such as the QWERTY

question 136

Multiple Choice

A standard which came to the market first, such as the QWERTY letter layout in typewriters, can become entrenched (this layout is still used in computer keyboards today) . What is this phenomenon called?

• A) network externalities
• B) path dependency
• C) sunk cost
• D) comparative advantage

---

Definitions:

Service Level

A measure of the quality of service provided, often expressed as a percentage, indicating how well a service meets customer expectations or agreed-upon standards.

Lead Time

The total time taken from the initiation of a process or order to its completion.

Carrying Costs

Expenses associated with holding or storing inventory over time, including insurance, storage, depreciation, and obsolescence.

EOQ Model

Stands for "Economic Order Quantity Model," a formula that calculates the optimal order quantity to minimize the costs of holding inventory and placing orders.