Question

Which of the following statements is true of a dominant design?

A) A firm that supports a technology that is chosen as the dominant design is in a poor position to shape the evolution of the industry.

B) It is not possible to have legally induced adherence to a dominant design.

C) When a firm's technology is locked in as the dominant design of a market, it earns low rewards.

D) A firm may find itself locked out of the market if it is unable to adopt the dominant design.

Answer 1

A dominant design refers to a technological design that becomes the standard in its industry, and a firm may find itself locked out of the market if it is unable to adopt the dominant design.

Step-by-step explanation:

A dominant design refers to a technological design that becomes the standard in its industry. It is characterized by widespread adoption, high market share, and a common understanding of the design principles and features. Based on the options provided, the correct statement about a dominant design is:

D) A firm may find itself locked out of the market if it is unable to adopt the dominant design.

When a dominant design emerges, it becomes difficult for new entrants or firms with alternative designs to gain traction in the market. The dominant design often sets the standard and shapes the industry, making it necessary for firms to align with the dominant design to remain competitive.