Which of the Following Is Not a Basic Strategy for a First

question 62

Multiple Choice

Which of the following is not a basic strategy for a first mover?

• A) Develop and market the innovation itself
• B) Develop and market the innovation jointly with other companies through a strategic alliance or joint venture
• C) License the innovation to others
• D) Discourage development of complementary assets
• E) All of these choices

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Definitions:

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Diminishing Returns

A principle stating that as more of a variable input is added to fixed inputs, the additional output gained from each new unit of input eventually decreases.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, ceteris paribus.

Production Technique

The method or process used to convert inputs into outputs in manufacturing or service delivery.