Which of the Following Statements Is True of First Movers

question 12

Multiple Choice

Which of the following statements is true of first movers relative to early followers and late entrants?

• A) Cost of developing necessary production processes and complementary goods is lower for first movers.
• B) First movers are in a better position to exploit buyer switching costs and also to reap increasing returns advantages.
• C) First movers, being incumbents, have greater ability than later entrants to respond to changes in the industry environment and adopt newer production processes.
• D) First movers fail to capture scarce resources such as key locations, government permits, access to distribution channels, and relationships with suppliers.

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Definitions:

Extinction

The process through which a conditioned response is weakened by presenting the conditioned stimulus without the unconditioned stimulus, eventually leading to the response disappearing.

Behavioral Paradigms

refer to established models or patterns that outline specific methods for studying and understanding behavior.

Selective Abstraction

A cognitive distortion that involves focusing solely on certain negative aspects of a situation while ignoring the positive aspects.

Cognitive Distortion

Faulty or biased ways of thinking about oneself and the world that are often negative and irrational.