Which of the following is true of a firm entering a market too early?
A) The distribution channel will be well established prior to its entry.
B) The technology and complements will be underdeveloped.
C) Competitors would have already captured controlling shares of the market.
D) The firm will not be able to reap the advantages of monopoly rent.

Question

Quizplus · Accepted Answer

If a firm enters a market too early, it means that the technology and complements required for the market may still be underdeveloped or not widely adopted, making it difficult for the firm to gain a foothold in the market. This is because the early entrant may need to invest heavily in developing the technology and educating consumers about the potential benefits, which could be a significant cost. Additionally, the lack of complements (such as accessories, software, or services) may limit the appeal of the product or service offered by the firm.

Which of the Following Is True of a Firm Entering