Pioneering costs are costs that an early entrant has to bear that a later entrant can avoid.

Question

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Pioneering costs are expenses incurred by the first firm to enter a new market or introduce a new product. These costs include research and development, creating a distribution network, establishing a brand name, and educating consumers. A later entrant can benefit from the pioneering efforts of previous firms and avoid some of these costs.

Pioneering Costs Are Costs That an Early Entrant Has to Bear