What Problem Do Late Developers Confront with Economies of Scale

question 63

Multiple Choice

What problem do late developers confront with economies of scale?

• A)They produce on a small scale at a higher cost
• B)They are unable to produce a large amount of their goods
• C)First movers are able to undermine these new businesses
• D)The laws and policies set by the first movers hinder late developers

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Definitions:

Common Stock

Common stock represents shares in a company that entitle holders to vote at shareholder meetings and receive dividends, typically possessing residual ownership in the company.

Manufacturing Facilities

The physical plants, factories, and machinery used in the process of producing goods.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to the net profit or loss.

Operating Activities

These involve the primary revenue-generating activities of an entity, such as cash flows from selling goods and services.