Which of the following statements is true of first movers in comparison with early followers and late

entrants?

Multiple Choice

The cost of developing necessary production processes and complementary

goods is lower for first movers.

First movers are in a better position to exploit buyer switching costs and also to

reap increasing returns advantages.

First movers, being incumbents, have greater ability than later entrants to

respond to changes in the industry environment and adopt newer production

processes.

First movers fail to capture scarce resources such as key locations, government

permits, access to distribution channels, and relationships with suppliers.