Some Economists Have Suggested That Network Externalities Result in Consumers

question 189

Multiple Choice

Some economists have suggested that network externalities result in consumers being locked into the use of products with inferior technologies.Economists Stan Leibowitz and Stephen Margolis have studied cases that have been cited as examples of this and found

• A)there is no convincing evidence that the alternative technologies were superior.
• B)consumers sometimes do become locked into the use of products with inferior technologies.
• C)that in all of these cases network externalities resulted in market failure.
• D)that consumers use products with inferior technologies when their prices are lower than products with superior technologies.

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Definitions:

Dominance

The state or condition of having authority or influence over others, often observed in social, economic, or ecological contexts.

Indians

Indigenous people originally inhabiting the Americas, or citizens of India, depending on context.

Moving West

The migration and settlement movement of people across the United States towards the western territories, often associated with the 19th-century Manifest Destiny ideology.

Enslaved Men

refers to males who were forced into slavery, deprived of personal freedom and subjected to the will of their owners.