In the Video Game Console Industry,Magnitude Was the First Firm

question 31

Multiple Choice

In the video game console industry,Magnitude was the first firm to introduce a console in the market.However,consumers were uncertain about the product,and its high costs discouraged consumers from purchasing it.Eventually,Magnitude withdrew the product from the market.A few years later,Mantel and Adventura came up with their respective gaming consoles and successfully established their products.Mantel and Adventura will be considered as:

• A) pioneers.
• B) early followers.
• C) laggards.
• D) late movers.

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Definitions:

ATC

Average Total Cost, a financial metric calculated by dividing total cost by the quantity of output produced, illustrating the average cost per unit of output.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output produced.

AFC

Average Fixed Cost, the fixed cost per unit of output, calculated by dividing total fixed costs by the quantity produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.