There Are Many Reasons Why a Company Might Prefer to Be

question 80

Multiple Choice

There are many reasons why a company might prefer to be a follower in a new market, not a first entrant.Which of these is not one of those reasons?

• A)reduced profits because the market is already gone
• B)fewer pitfalls as the follower can see the mistakes of the first-mover
• C)better developed marketing channels
• D)competitive response from other MNCs and local competitors
• E)none of the above

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Definitions:

Quantity Demanded

The complete quantity of a product or service that buyers are ready and capable of buying at a certain price during a designated time frame.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.

Production Possibility Frontier

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when using all available resources efficiently.