Which of the Following Statements Is Not True When Being

question 15

Multiple Choice

Which of the following statements is not true when being the first mover or the first firm to serve customers in a market?

• A) When network externalities are present, being the first mover is an advantage.
• B) Being the first mover gives the entrepreneur the first chance at obtaining life long customers.
• C) Being the first mover is advantageous when there are high switching costs for customers.
• D) Being the first mover will give the entrepreneur a chance to set the market standard.
• E) All of the above statements are true.

Understand how imperfect information can affect market outcomes.

Comprehend the reasons behind market failure due to poor information.

Understand the concept and characteristics of public goods, including non-excludability and non-rivalry in consumption.

Recognize the free rider problem and its impact on the provision of public goods.

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Definitions:

Table

A piece of furniture with a flat top and one or more legs, providing a level surface on which objects may be placed, and commonly used for eating, writing, working, or playing on.

Bill

A draft of a proposed law presented to a legislature for discussion and approval.

Teleological View

A perspective that interprets actions or events in terms of their purpose or goal rather than their cause.

Mechanistic

Pertaining to a viewpoint or theory that likens complex systems to mechanical objects, assuming all phenomena result from physical forces and can be explained by the laws of physics.