All but One of the Following Have Been Suggested by Some

question 220

Multiple Choice

All but one of the following have been suggested by some economists as possible consequences of path dependency and switching costs.Which of the following is not a possible consequence of path dependency and switching costs?

• A)Consumers may get locked into using products with inferior technology.
• B)market failure
• C)diseconomies of scale
• D)Government intervention may be necessary in affected markets in order to improve economic efficiency.

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Definitions:

Overcompensate

To overcompensate means to respond too strongly or excessively in an attempt to correct a real or imagined deficiency or mistake.

Retain

Refers to the ability to keep or hold information, knowledge, or possessions.

Biologically Programmed

Characteristics or behaviors that are determined by genetics and biology, often implying a hardwired disposition in living organisms.

John Bowlby

A British psychologist best known for his work in developing attachment theory, which emphasizes the importance of early emotional bonds formed between children and their caregivers.