Which of the Following Statements About Pioneers and Followers Is

question 192

Multiple Choice

Which of the following statements about pioneers and followers is false?

• A) A pioneer is the first to market with a new product idea.
• B) On average, pioneers are usually more profitable than followers.
• C) Second movers typically have a strong customer-focus.
• D) Second movers that respond quickly build market share in the market growth stage.
• E) None of these choices is false.

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Definitions:

Optimal Factor Choice

A decision-making process in which a firm determines the most efficient combination of factors of production (labor, capital, etc.) to maximize output or minimize costs.

Weak Axiom of Cost Minimization (WACM)

An economic principle stating that if a set of goods is chosen over another set at the same prices, then the chosen set should not cost more than the other when prices change.

Input Bundle

A combination of resources or inputs used in the production of goods and services.

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.