If the aspects that customers have come to expect in a technology are difficult for competitors to imitate,a technology leader:
A) will have to bear monopoly costs.
B) can yield sustained monopoly rents.
C) will have lower bargaining power.
D) will have higher switching costs.

Question

Quizplus · Accepted Answer

If the aspects that customers have come to expect in a technology are difficult for competitors to imitate, a technology leader can establish sustained monopoly rents as competitors will find it challenging to replicate the features that distinguish the leader's offering. This gives the leader a competitive advantage and pricing power which allows them to set high prices and extract economic rents.

If the Aspects That Customers Have Come to Expect in a Technology