An advantage of Microsoft Windows is its compatibility with the widest range of hardware and software.The dominance of Windows is self-reinforcing: hardware and software manufacturers ensure that their products are compatible with Windows in order to have access to the large number of Windows users.Which situation best describes this scenario?
A)endowment effects
B)endorsement effects
C)economies of scale
D)network externalities

Question

Quizplus · Accepted Answer

The scenario described is that of network externalities, where the value of a product or service increases as the number of users grows. In this case, the large number of Windows users creates a self-reinforcing cycle where manufacturers ensure compatibility with Windows, which in turn attracts more users, further increasing the value of the Windows ecosystem.

An Advantage of Microsoft Windows Is Its Compatibility with the Widest