Consider the following statement: "A firm competing in an embryonic industry cannot afford to lose its...

Consider the following statement: "A firm competing in an embryonic industry cannot afford to lose its few customers, and so it should do everything it can to satisfy the needs of innovators." Do you agree or disagree, and why?

Expert Solution

It is rather difficult to agree with the above statement owing to the fact that innovators possess a set of customer needs that sets it apart from that of any early majority that could be availed from the market. Embryonic market is a niche segment and hence the strategies supporting the same shall differ from the ones that needs to support the mass market. In addition, if the Organizations do not update their strategies, then the scope of losing the market share to the ones who adopt to such strategies, would be higher and hence unwarranted. Innovators, unlike early majority, understand the value of imperfections and hence attempt to seek the advantages from the same. Anything that is a cake-walk, is not the path for the innovators. They are approachable through some dedicated channels of distribution which may even include the word of mouth but mass media marketing. They do away with the part of price-sensitivity and ensure cost-leadership strategies so that they can come up with quality products at a reasonable price for its customers to afford to.

keosha answered 1 year ago

Two firms are competing in an oligopolistic industry. Firm 1, the larger of the two firms...

Two firms are competing in an oligopolistic industry. Firm 1, the larger of the two firms are contemplating its capacity strategy, which could be either “aggressive” or “ passive”. Firm 2, the smaller competitor, is also pondering its capacity expansion strategy and a passive strategy. The following table shows the profits associated with each pair of choices: Firm 1 Firm 2 Aggressive Passive Aggressive 25, 9 33, 10 Passive 30, 13 36, 12 a. If both decide their strategies simultaneously,...

Consider the following market game: An incumbent firm, called firm 3, is already in an industry....

Consider the following market game: An incumbent firm, called firm 3, is already in an industry. Two potential entrants, called firms 1 and 2, can each enter the industry by paying the entry cost of 2. First, firm 1 decides whether to enter or not. Then, after observing firm 1's choice, firm 2 decides whether to enter or not. Every firm, including firm 3, observes the choices of firms 1 and 2. After this, all of the firms in the...

Consider this statement: "Most people can't afford to invest in a diversified portfolio. Therefore, the idea...

Consider this statement: "Most people can't afford to invest in a diversified portfolio. Therefore, the idea that we should only analyze securities in a "portfolio" context is not right." What do you think?

Which of the following is not an accurate statement as concerns competing in the markets of...

Which of the following is not an accurate statement as concerns competing in the markets of foreign countries? Group of answer choices Starbucks must contend with fluctuating exchange rates and country-to-country variations in host government restrictions and requirements. Market growth rates vary from country to country, impacting John Deere's international sales. Avon's cosmetic products suitable for China are often inappropriate in Singapore and Malaysia. Localizing Apple's product offerings country-by-country leads to low-cost advantage. There are country-to-country differences in Round Table...

Consider the following cost curve for a firm in a competitive industry where the market price...

Consider the following cost curve for a firm in a competitive industry where the market price equals $120 C=1/3q^2+20q+500 What is the firm's marginal cost (MC)? MC = At what level of output does the firm maximize profits (minimize losses)? Profit is maximized at: units of output. (Round your answer to two decimal places.) What is the firm's profit maximizing price? What is the firm's profit? In the short-run, this firm should produce/shutdown? .

Consider an industry with n identical firms competing a l´a Cournot. Demand is P(Q) = 1...

Consider an industry with n identical firms competing a l´a Cournot. Demand is P(Q) = 1 − Q, and each firm’s total cost function is T C(qi) = cqi . (a) Find the limit of the total equilibrium output Q∗ (n) as n goes to infinity. (b) Suppose that n > 3 and 3 firms decide to merge. The new firm has the same total cost function as its predecessors. What is the condition on n that ensures that the...

Consider a competitive industry and a price-taking firm that produces in that industry. The market demand...

Consider a competitive industry and a price-taking firm that produces in that industry. The market demand and supply functions are estimated to be: Demand: Qd= 10,000 - 10,000P + 1.0M Supply: Qs= 80,000 + 10,000P - 4,000P1 where Q is quantity, P is the price of the product, M is income, and P1 is the input price. The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and P1 for 2015: M̂...

A firm in a perfectly competitive industry knows the following about its costs and revenue. The...

A firm in a perfectly competitive industry knows the following about its costs and revenue. The firm would like to maximize profit and has hired a consultant for advice. Price Q of Output Total Revenue Total Cost Total Fixed Cost P? Q? 7,400 TC? 3,300 Total Variable Cost Average Total Cost Average Variable Cost MC TVC? 9 3 5 Part 1. Average Fixed Cost ____ Part 2. Price _____ Part 3: Quantity _____ Part 4. Total Cost _____ Part 5. What is the value of...

If a monopolistic competitive firm raises its price, then a.it should expect to lose all of...

If a monopolistic competitive firm raises its price, then a.it should expect to lose all of its customers because there are many other sellers of the product b.this is a trick question because the firm does not have the ability to change its price c.it should expect to lose some but not all of its customers d.it will be able to increase its profits e.it can sell all it wants because it faces a horizontal demand curve Compared to a...

Please consider the following data from 2017-2019 of a firm in the fashion industry who is...

Please consider the following data from 2017-2019 of a firm in the fashion industry who is expanding its business by increasing the number of products (from T-shirts only the company is expanding its product portfolio into jumpers, trousers, skirts, now launching also swimwear and sportswear) General rules You may have access to your notes, slides, and internet (to access library or other search engines) Please read carefully the following instructions and be sure to address carefully each point 2 |...

Question