Early Entrants to a Market That Are Able to Create

question 61

Multiple Choice

Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on:

• A) first-mover advantages.
• B) pioneering costs.
• C) economies of scale.
• D) late-mover advantages.

---

Definitions:

Common Law Courts

Courts that determine the outcome of disputes and make legal decisions based on precedents set by previous cases, as opposed to statute law.

Public Law

The public good; law concerning the government and individuals’ relationships with it, including criminal law and the regulations created by government agencies.

Private Law

That branch of law dealing with relationships between private individuals, such as contracts, property, and family law, excluding criminal matters.

Common Law Judges

Jurists who interpret and apply the law according to historical legal precedents and decisions made in prior cases rather than written statutes or legislations.