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

question 92

Multiple Choice

A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with:

• A)demand preemption.
• B)diseconomies of scale.
• C)pioneering costs.
• D)diseconomies of scope.

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Definitions:

Profits

The financial gain obtained when the revenues from business activities exceed the expenses, costs, and taxes associated with the operation.

Exponential Smoothing

A time series forecasting method for smoothing data points by assigning exponentially decreasing weights over time.

Trend Adjustment

A statistical technique used to correct or adjust data to account for systematic patterns or trends over time, improving the accuracy of forecasts.

Alpha

Often refers to the coefficient in statistical models representing the intercept or in finance, a measure of investment performance on a risk-adjusted basis.