A Second Mover

question 7

Multiple Choice

A second mover:

• A) is typically ineffective in its response to the first mover.
• B) attempts to provide a product with greater customer value than the first mover's product.
• C) usually incurs higher expenses than the first mover since it must engage in reverse engineering.
• D) typically has a higher survival rate than first movers which typically take greater risks.

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Definitions:

Technology Spillovers

The process through which innovations and technologies developed in one sector or firm spread to other sectors or firms.

Patent Protection

The granting of a legal right to an inventor to exclude others from making, using, or selling their invention for a limited period.

External Benefit

A benefit that an action or activity provides to individuals or groups who are not directly involved in it.

Private Cost

The cost incurred by an individual or company in producing goods or services, excluding any costs imposed on others which are not reflected in market prices.