Question

Neon Inc. is an electronics manufacturing company. It has adopted a dominant design for its television audio speakers. Which of the following is the firm most likely to experience, as a result of this decision?

a. Neon Inc. will have to invest heavily in R&D to come up with new designs for the audio speakers.

b. Neon Inc. will face increasing returns to adoption.

c. Neon Inc. will have reduced opportunities to develop complementary assets.

d. The design adopted by Neon Inc. will be unpopular among most of the other manufacturers.

Answer

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