Compared to new entrants, existing firms that have made substantial investments in their operations have a
A) timing advantage
B) technological disadvantage
C) cost advantage
D) competitive disadvantage

Question

Quizplus · Accepted Answer

Existing firms that have made substantial investments in their operations tend to have a cost advantage over new entrants. This is because they have already made significant investment, have established distribution networks, and have built supplier relationships, which results in economies of scale and the ability to spread fixed costs over a larger output.

Compared to New Entrants, Existing Firms That Have Made Substantial