21. Which of the following are ways Katz suggests that the chicken-and-egg problem can be overcome in consumer payment innovations such as mobile payments? (pp. 23-25) 1. Set prices above cost initially to earn profits that can be invested in new technology. 2. Set prices below cost initially to attract customers and achieve critical mass. 3. Start out with small a group of users that have strong network effects among themselves. 4. Make new payment services compatible with each other and with existing payment systems. A. 1 and 3 B. 2 and 3 C. 1,3, and 4 D. 2, 3, and 4 22. Which of the following are important characteristics of Apple Pay according to Evans and Schmalensee? (pp. 150, 157-158). I 1. It is a multisided platform. 2. It is a single-sided service. 3. It bypasses the card networks. 4. It makes use of the card networks A. 1 and 3 B. 1 and 4 C. 2 and 3 D. 2 and 4 23. According to Evans and Schmalensee, which of the following were factors that tended to help Apple Pay gain traction and achieve critical mass (pp. 159, 160, 162, 164) 1. Decision by Apple to go broad/go shallow" by covering the whole country. 2. Apple's large bank account and strong reputation. 3. Agreement by major card networks and many large banks to participate in Apple Pay. A. 1 and 2 B. 2 and 3 C. 1 and 3 D. 1, 2, and 3