A good is path dependent when
A)consumers get utility from consuming goods that others are consuming, such as restaurants.
B)the first technology that was adopted has an advantage over a better technology that came later.
C)people who move location follow the path of people who moved before them.
D)it can only be used in one way.

Question

Quizplus · Accepted Answer

A good is path dependent when the first technology that was adopted has an advantage over a better technology that came later. This means that the path that was chosen to produce or use the good has a significant impact on its future development and adoption. Path dependence can create barriers to entry for new technologies and competitors, creating market inefficiencies and limiting innovation. The other choices do not fully capture the concept of path dependence.

A Good Is Path Dependent When