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?

Question

Quizplus · Accepted Answer

Adopting a dominant design allows a firm to benefit from increasing returns to adoption as customers become familiar with and prefer the standardized design. Option A is not necessary as there may be other areas of R&D that the firm can focus on. Option C may also not be true as the firm can still develop complementary assets to support the dominant design. Option D is not necessarily true as the dominant design may be popular among the majority of manufacturers.

Neon IncIs an Electronics Manufacturing Company