The ______________ Entrant Is More Likely Than the ________________ Entrant

question 32

Multiple Choice

The ______________ entrant is more likely than the ________________ entrant to be able to capture the first-mover advantages associated with demand pre-emption,scale economies,and switching costs.

• A) small scale; large scale
• B) small scale; moderate scale
• C) large scale; moderate scale
• D) there is no relationship between scale of entrant and the ability to capture first-mover advantages
• E) large scale; small scale

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Definitions:

Capital Goods

Long-term assets such as buildings, machinery, and equipment purchased by businesses to produce goods and services.

Terms of Trade

The ratio of an index of a country's export prices to an index of its import prices, used to measure the relative trading advantage or disadvantage.

Consumption

The use of goods and services by households, constituting one of the primary components of GDP.

Developing Nations

Countries with a lower living standard, undeveloped industrial base, and low Human Development Index (HDI) relative to other countries.