The Chief Disadvantage of Being a First Mover Is The

question 58

Multiple Choice

The chief disadvantage of being a first mover is the:

• A) High degree of risk
• B) High level of competition in the new marketplace
• C) Inability to earn above-average returns unless the production process is very efficient
• D) Difficulty of obtaining new customers

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Definitions:

Free Good

A good that is available without any cost, typically because it is abundant or not owned by any one entity.

Economizing Behavior

The practice of minimizing costs or expenditures while achieving desired outcomes.

Opportunity Cost

The penalty of overlooking the closest preferable alternative in the course of decision-taking.

Satisfaction

The feeling of pleasure or contentment arising from meeting one's needs or expectations.