Sony and Zenith Must Each Decide Which Technology to Utilize

question 9

Multiple Choice

Sony and Zenith must each decide which technology to utilize in building their 2019 model high definition television (HDTV) sets: either Alpha technology or Beta technology.Sony has a technological advantage in using Alpha technology and Zenith has a technological advantage in using Beta technology.The payoff table below shows the profit outcomes for both firms in the various possible technology choice outcomes: Suppose the technology decision will be made sequentially.Sony ________ (does,does not) possess a first-mover advantage,and Zenith ________ (does,does not) possess a first-mover advantage

• A)does; does
• B)does; does not
• C)does not; does
• D)does not; does not

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Definitions:

Legal Tender

Currency that must be accepted if offered in payment of a debt, officially issued by a government or monetary authority.

Cryptocurrencies

Digital or virtual currencies that use cryptography for security and operate independently of a central bank, exemplified by Bitcoin and Ethereum.

Intermediaries

Entities or individuals that act as middlemen between different parties in a transaction, facilitating the exchange of goods, services, or information.

Electronic Currencies

digital forms of currency that exist electronically, such as cryptocurrencies, which are used for online transactions.