The computers of Main Frame Inc., a computer company, are manufactured with in-built operating software. The users of this software have avoided using computers manufactured by other companies because that would entail converting their data to the other software. Also, they would have to get used to working smoothly with the other software. From this scenario, we can infer that ________.
A)the users of Main Frame Inc. have increased power.
B)the switching cost would be higher for the users of Main Frame Inc.
C)the users of Main Frame Inc. have increased industry rivalry tremendously.
D)it is easy for competitors to poach users of Main Frame Inc.

Question

Quizplus · Accepted Answer

The scenario suggests that the users of Main Frame Inc. have avoided using computers manufactured by other companies because of the high switching cost. This means that the users have a high level of dependence on Main Frame Inc.'s software, indicating that the switching cost would be higher for them.

The Computers of Main Frame Inc