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 principle best describes this scenario?
A)endowment effects
B)endorsement effects
C)economies of scale
D)network externalities

Question

Quizplus · Accepted Answer

The principle that best describes this scenario is network externalities. This is because the value of using Windows increases as more people use it, leading to a self-reinforcing cycle where more hardware and software manufacturers ensure compatibility with Windows. This creates a positive feedback loop and reinforces the dominance of Windows.

An Advantage of Microsoft Windows Is Its Compatibility with the Widest