Question

Switching costs, in the context of technology industries, refer to the costs that: a. industries have to incur in order to adhere to technical standards. b. customers need to bear to abandon an established standard and adopt a new standard. c. companies have to incur to switch from one business model to another. d. companies need to bear to create product differentiation when they are locked inside an industry. e. industries need to bear in order to abandon old technology and get license for a new technology.

Answer 1

b. customers need to bear to abandon an established standard and adopt a new standard.

Step-by-step explanation:

Switching cost is the cost that is to be incurred or expenses while changing between the brands, products,, quality, quantity, price, etc

It should also be in favorable to the consumer with respect to the time, effort, and the cost

So as per the question, the switching cost with respect to the technology industries is to leave an establishment standard and adopt a new standard so that the consumers should be come under the flexible instead of rigid plus they get an idea also.