A Small-Scale Entrant Is More Likely Than a Large-Scale Entrant

question 66

True/False

A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs.

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than other producers.

International Trade

The exchange of goods, services, and capital between countries and territories, allowing for greater variety of consumption and efficiencies in production.

Productive

Refers to the ability of an individual, company, or economy to produce goods or services efficiently and effectively.

Tariff Revenue

Income generated by the government through the imposition of taxes on imported goods.