An analysis of the competition suggests the average retail selling price of an electronic game is $89. The owner of a computer accessories store has a chance to purchase 5 dozen of these games at a delivered cost of $55 per unit. Her normal margin on electronic games is 35%. Should she make the purchase? Why? Why not?

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms? a. unlike incumbent firms, new entrants do not have to face the high entry barriers, initially. b. new entrants are embedded in an innovation ecosystem, while incumbent firms are not. c. unlike incumbent firms, new entrants do not have formal organizational structures and processes. d. incumbent firms do not have the advantages of network effects that new entrants have.