Video game consoles and video games are complementary products: the availability of one increases the value of the other.In the past the suppliers of consoles were able to appropriate most of the profits generated by video game systems because:
A)Video game consoles cost more to develop than video games
B)The consoles were more powerful determinant of the consumer experience than the games
C)The console suppliers controlled technology and distribution giving them more bargaining power than the suppliers of video games
D)The console makers-Nintendo,Sony and Microsoft-were bigger companies than the suppliers of video games.

Question

Quizplus · Accepted Answer

The statement mentions that the console suppliers controlled technology and distribution giving them more bargaining power than the suppliers of video games. This suggests that console makers such as Nintendo, Sony, and Microsoft were able to appropriate most of the profits generated by video game systems. Option A and B are not explicitly mentioned in the statement, and option D is not a relevant factor in this context.

Video Game Consoles and Video Games Are Complementary Products: the Availability