A Significant Downside to Network Externalities Is That

question 131

Multiple Choice

A significant downside to network externalities is that

• A)there may be large switching costs to consumers of changing products so that consumers end up using products with inferior technologies.
• B)firms may network with unethical suppliers or distributors.
• C)the costs of using celebrity endorsements may be very high.
• D)there may be large switching costs to firms changing technologies.

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Definitions:

National Union Federations

Umbrella organizations that encompass various unions within a country, coordinating activities and representing a broad spectrum of workers.

Consultation

A process where employers seek advice or opinions from employees or their representatives before making decisions that affect them.

Cooperation

The action of working together towards common goals or interests, often involving sharing information, resources, or efforts.

Labor Unions

Organizations formed by workers to protect their rights, negotiate wages and benefits, and advocate for better working conditions.