Which of the Following Best Exemplifies a First-Mover Advantage

question 47

Multiple Choice

Which of the following best exemplifies a first-mover advantage?

• A)Venus Inc.has more than 50 percent market share in the telecom industry,because no other company had invested in this industry before Venus Inc.
• B)Maya won a cash discount of 75 percent on the latest NewY phone as she was the winner of a competition conducted by NewY.
• C)The level of satisfaction Simon experienced when dining at the Emerald Inn was greatest the first time,and thereafter it reduced each time he dined there.
• D)Innovative Creations Inc.was the first to exit the declining pager phone manufacturing industry and as a result,it avoided losing a lot of money.
• E)Product critiques are extremely respected by major firms,as they are the first ones to review new products and services.

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Definitions:

Countercyclical Stock

A type of stock whose performance is inversely related to the overall economic cycle, often performing better during economic downturns.

Expected Return

It represents the weighted average of all possible returns from an investment, considering the probabilities of each outcome.

Beta

A measure of a stock's volatility in relation to the overall market; indicating the relative risk associated with investing in the stock.