What Is First Mover Advantage

question 89

Multiple Choice

What is first mover advantage?

• A) The concept that the first in the market will make the most money
• B) The concept that a firm who exploits an opportunity before others has an advantage
• C) The concept that there is an advantage in leaving a market when it becomes flooded
• D) The concept that large organizations cannot take advantage of an opportunity as quickly as an entrepreneur
• E) The concept that there is more risk being first, but also more reward, if successful

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Definitions:

Equilibrium Price

The price point in the market at which the amount of goods being offered for sale matches the amount of goods buyers are willing to purchase.

Football Game

A competitive team sport involving two squads attempting to advance an oval-shaped ball into the opponent's goal area to score points.

Soccer Match

A soccer match is a competitive game between two teams, each aiming to score more goals than the other within a specified period.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, such as labor or capital.