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Company B invented a weight loss medication that decreases food cravings without downsides. The company was able to reap the benefits of economies of scale
Company B invented a weight loss medication that decreases food cravings without downsides. The company was able to reap the benefits of economies of scale due to the significant consumer demand for the drug. After the success of the drug, large pharmaceutical companies developed a similar drug. However, consumers preferred the drug created by Company B as it had shown a track record of effectiveness and safety. Which of the following benefits does this scenario best illustrate?
a. | social benefits | |
b. | fringe benefits | |
c. | network externalities | |
d. | first-mover advantages |
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