Larry's Lizards and Ronaldo's Reptiles are competing pet store franchises. Both are considering opening a store in the small town of Turtleville. If Ronaldo's opens a profitable store in Turtleville and Larry's management determines that it is not profitable to also open a store, then

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If Ronaldo's opens a profitable store in Turtleville and Larry's management determines that it is not profitable to also open a store, then Ronaldo's had a first-mover advantage in this game. This is because Ronaldo's was able to enter the market first and capture customer demand, making it difficult for Larry's to enter and compete. Therefore, Larry's would not open a store, resulting in Ronaldo's having a monopoly in the market.

Larry's Lizards and Ronaldo's Reptiles Are Competing Pet Store Franchises