Individual firms should invest substantial financial resources in tryi

QUESTION

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.

Indicate whether the statement is true or false.

ANSWER

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