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Advantages are likely to accrue to accrue to a firm that is a first mover in a market where technical standards are important.

a. True
b. false

User Darren Lau
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1 Answer

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Final answer:

True, first-movers in markets where technical standards are critical can gain significant competitive advantages, leading to a winner-take-all situation as seen with Microsoft in PC software and Amazon in online bookselling.

Step-by-step explanation:

The statement that advantages are likely to accrue to a firm that is a first mover in a market where technical standards are important is true. When a company is the first to establish itself in a given market, particularly where technical specifications are central to the industry, it may gain substantial competitive advantages.

This scenario often results in a winner-take-all situation, similar to the dominance achieved by companies like Microsoft and Amazon in their respective fields. The first mover can dictate standards, attract a large customer base, and achieve economies of scale, making it difficult for later entrants to compete.

User Donovan
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