In a Sequential Game with Two Firms, the First Mover

question 6

Multiple Choice

In a sequential game with two firms, the first mover into a new market

• A)is guaranteed positive economic profits.
• B)is assured of blocking any potential second mover from entering the market.
• C)runs the risk that the untested new market will not provide enough customers.
• D)will likely set a high price to reap greater profits until the second mover enters.

---

Definitions:

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Dominant Source

The primary or most influential point of information or authority within a context or system.

Sensual Pleasure

Enjoyment derived from the gratification of the senses, often related to touch, taste, smell, sight, and hearing.

Anus

The opening at the end of the digestive tract through which feces exit the body.