Which of the following statements is true about a firm with a long development c
ID: 425960 • Letter: W
Question
Which of the following statements is true about a firm with a long development cycle time?
It can quickly revise or upgrade its product offering.
It is more likely to have a high cost of capital.
It is more likely to be able to fully amortize the fixed costs of development before that generation becomes obsolete.
It can take advantage of both first-mover and second-mover advantages.
It can quickly revise or upgrade its product offering.
It is more likely to have a high cost of capital.
It is more likely to be able to fully amortize the fixed costs of development before that generation becomes obsolete.
It can take advantage of both first-mover and second-mover advantages.
Explanation / Answer
Option- 1 It can quickly revise or upgrade its product offering
Above is the most appropriate one and benefits a company like a software development company, which can evolve it’s products or produce more product variants, with up gradations and better options for their different segments of customer. Microsoft, Google always practice this.
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