In Which of the Following Instances Is Being a First-Mover

question 58

Multiple Choice

In which of the following instances is being a first-mover NOT particularly advantageous?

• A) When moving first with a preemptive strike makes imitation difficult or unlikely
• B) When first-time buyers remain strongly loyal to pioneering firms in making repeat purchases
• C) When early commitments to new technologies,types of components,or emerging distribution channels produce an absolute cost advantage over rivals
• D) When markets are slow to accept the innovative product offering of a first-mover,and fast followers possess sufficient resources and marketing muscle to overtake a first mover
• E) When being a pioneer helps build a firm's image and reputation with buyers

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Definitions:

Budget Lines

A graphical representation of all possible combinations of two goods that can be purchased with a fixed income.

Indifference Curves

Graphical representations of a consumer's preferences, showing different combinations of two goods between which the consumer is indifferent.

VCR

A video cassette recorder, a device once commonly used to play and record television programs and movies on magnetic tape.

Perfect Substitutes

Goods or services that can be used in exactly the same way, thus one can completely replace another in consumption.