Which of the Following Is True of First Movers

question 20

Multiple Choice

Which of the following is true of first movers?

• A) The first mover cannot be able to establish brand loyalty.
• B) The first mover has no opportunity to exploit network effects and positive feedback loops.
• C) The first mover cannot create switching costs for its customers to deter rivals.
• D) The first mover that creates a revolutionary product is in a monopoly position.
• E) Being a first mover guarantees instant success.

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Definitions:

Cost Control

The practice of managing and reducing business expenses to increase profitability.

Management Accounting

The process of preparing management reports and accounts that provide accurate and timely financial and statistical information necessary for managers to make day-to-day and short-term decisions.

Cost Accounting

A branch of accounting focused on calculating and controlling costs of producing or providing services.

Competitive Environment

The external factors and forces that affect an organization's ability to compete in its market, including competitors, market trends, and regulatory conditions.