Company a Entered the Production of Office Software Before Its

question 68

Multiple Choice

Company A entered the production of office software before its competitors. Because of this, the company's products are more familiar among and favored by customers. This situation exemplifies the

• A) first-mover advantage.
• B) diminishing marginal returns.
• C) economies of scale.
• D) constant marginal returns.

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Definitions:

Firm's Profits

Total earnings a company retains after subtracting all costs, expenses, taxes, and charges from its total revenue.

Customer Needs

The specific expectations and preferences of consumers that influence their purchasing behavior and brand loyalty.

Quality of Life

A measure of an individual's well-being and happiness, often considering factors like health, comfort, leisure, and economic circumstances.

Facility Locations

The strategic placement of business operations, warehouses, and production sites to optimize efficiency and costs.