Which of the following advantages is derived from being a 'first-mover'?Question 9Select one:a.Ability to capitalize on the work done by other firmsb.Ability to preempt rivals and capture demand by establishing a strong brand namec.Lower research and development costs and marketing costs than other firmsd.Creation of innovative products at lower costs than other firms

In a sequential game, the firm which is the first to enter a new market will certainly have a first mover advantage.

"There are substantial learning effects, that is, there is a lot of ‘learning by doing’. In addition to gains from economies of scale, there are gains to be sought from experience. Firms learn how to do specific activities more efficiently over time after they have performed those activities many times over. They learn from the mistakes in their attempts to perform activities and become more adept at performing those better than other firms that have not had that similar experience. As such, early or first movers into an industry have the opportunity to learn more and reduce their per-unit cost, which late movers into an industry do not have."Which trade theory is the above most relevant to?Group of answer choicesNew Trade TheoryTheory of Absolute AdvantageHeckscher-Ohlin theoryInternational product life cycle theory

In a sequential move Bertrand duopoly model with homogenous products, is there afirst-mover advantage?a. Yes, first-movers always hold the advantage over other firms.b. Yes, first-movers may have an advantage, but it depends on the model assumptions.c. Yes, first-movers can set prices and earn higher profits.d. No, first-movers cannot choose a profit maximizing quantity because the second-mover can always produce a bit less and earn higher profits.e. No, the second-mover would be able to set a slightly lower price and capture the fullmarket share.

In the context of the Middle East's taxi-booking segment, factors like innovativeness and first-mover’s advantage are highly relevant for sustainable and continuous success. (elaborate more )

Which of the following statements is not true?Group of answer choicesFirst-mover advantage appears to have succeeded only for a very small group of companies.Brands remain very important in e-commerce.Overall transaction costs have dropped dramatically.Information asymmetries are continually being introduced by merchants and marketers.