Which of the Following Is Not an Advantage of a Small-Scale

question 44

Multiple Choice

Which of the following is not an advantage of a small-scale entry?

• A)A small-scale entrant is more likely to be able to capture first-mover advantages associated with demand preemption,scale economies,and switching costs.
• B)Small-scale entry is a way to gather information about a foreign market before deciding how best to enter.
• C)By giving the firm time to collect information,small-scale entry reduces the risks associated with a subsequent large-scale entry.
• D)Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market.

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Definitions:

Diseconomies Of Scale

The phenomenon where production costs per unit increase as a firm or production process increases in size, often due to inefficiencies.

Industry Demand Curve

A graphical representation of the total demand for the products or services provided by a specific industry at various prices.

Network Externalities

Benefits or costs that affect a user of a product or service, depending on the number of other users of the same or similar products or services.

NCAA

The National Collegiate Athletic Association, an organization that regulates athletes of many U.S. colleges and universities, setting eligibility criteria and organizing sports competitions.