Microsoft Word is the most widely used word-processing program. Which of the following explanations for its popularity uses the lock-in hypothesis?

A. Build a better mousetrap and the world beats a path to your door. MS Word is the better mousetrap.
B. MS Word is priced below other competing programs; Microsoft can afford to price it low because it sells so many copies.
C. Although MS Word is not the cheapest word processor, its ratio of features to price is better than the competitors.
D. Because MS Word is the standard in business, it is difficult to use other word processing programs and share documents.


Answer: D

Economics

You might also like to view...

Any event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity.

Answer the following statement true (T) or false (F)

Economics

Rapidly growing developing countries tend to be borrowers on the international capital markets. From this information we may surmise that they have a comparative advantage in

A) future income. B) capital goods. C) disposable income. D) consumer goods. E) present income.

Economics

The difference between a corrective tax and a tradable pollution permit is that

a. a corrective tax sets the price of pollution and a permit sets the quantity of pollution. b. a corrective tax creates a more efficient outcome than a permit. c. a corrective tax sets the quantity of pollution and a permit sets the price of pollution. d. a permit creates a more efficient outcome than a corrective tax.

Economics

Patents

A) will create a profit incentive to do research. B) might be welfare reducing if granted for too long a period. C) serve as a barrier to entry. D) All of the above.

Economics