Individual firms should invest substantial financial resources in trying to build a first-mover advantage,even if that means several years of losses before a new venture becomes profitable.

Question

Quizplus · Accepted Answer

Building a first-mover advantage can provide a competitive edge in the market, which may ultimately lead to long-term profitability. Therefore, it may be worthwhile for individual firms to invest substantial financial resources in this endeavor, even if it means incurring losses in the short term.

Individual Firms Should Invest Substantial Financial Resources in Trying to Build