Switching Costs Are the Costs

question 8

Multiple Choice

Switching costs are the costs:

• A) of turning on the lights.
• B) associated with keeping your purchases with the same company.
• C) of switching purchases from one firm to another.
• D) of coming to an agreement.

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Definitions:

Privity Requirement

The legal doctrine stating that only parties involved in the creation of a contract have the standing to enforce or challenge it.

Securities Act

A 1933 United States law that regulates the sale of securities, primarily requiring the disclosure of important financial information through registration of securities.

Aiding and Abetting

The act of assisting or facilitating another person in the commission of a crime by providing advice, financial support, or physical assistance.

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, to protect investors and maintain fair and orderly markets.