Airbus pioneered the development of the new superjumbo jet at a cost of $15 billion. It quickly obtained contracts for much of the 400 units that are expected to be ordered in the next 20 years, thereby effectively shutting out its competitor, Boeing. Airbus benefits from
A) first-mover advantages.
B) comparative advantages.
C) absolute advantages.
D) economies of scale.
E) factor endowments.

Question

Quizplus · Accepted Answer

Airbus benefits from first-mover advantages by being the first to develop and market the superjumbo jet, allowing it to secure contracts and establish a strong market position before its competitor, Boeing.

Airbus Pioneered the Development of the New Superjumbo Jet at a Cost