Which of the following is an advantage of making a new generation of technology backward compatible?
A) Consumers will have to buy completely new complements.
B) Consumer switching costs may be lower because they anticipate using their existing complements.
C) It directly increases the sales of complementary goods for its new generation of technology.
D) It is typically less expensive to make a new generation of technology backward compatible than to make it incompatible.

Question

Quizplus · Accepted Answer

Making a new generation of technology backward compatible allows consumers to continue using their existing complements with the new technology, which can lower switching costs and make it more appealing to upgrade. This can increase sales for the new technology as consumers are more likely to adopt it if they can still use their existing products. However, this may also raise the cost of development since the technology must be designed to work with older devices. Option A is incorrect as making a new generation of technology backward compatible can reduce the likelihood of consumers having to buy completely new complements. Option C is incorrect as it refers to the sales of complementary goods, which is not related to the question being asked. Option D is incorrect as making a new generation of technology backward compatible may be more expensive as it requires additional engineering and testing to ensure compatibility with older devices.

Which of the Following Is an Advantage of Making a New