2. According to the passage, today's successful firms, unlike successful firms in the past, may earn the greatest profits by
(A) investing in research to produce cheaper versions of existing technology
(B) being the first to market a competing technology
(C) adapting rapidly to a technological standard previously set by a competing firm
(D) establishing technological leadership in order to shape product definitions in advance of competing firms.
(E) emphasizing the development of methods for the mass production and distribution of a new technology.
3. According to the passage, consumers began to develop a preference for VCR's in the VHS format because they believed which of the following?
(A) VCR's in the VHS format were technically better than competing-format VCR's.
(B) VCR's in the VHS format were less expensive than competing-format VCR's.
(C) VHS was the first standard format for VCR's.
(D) VHS prerecorded videotapes were more available than Beta-format tapes.
(E) VCR's in the Beta format would soon cease to be produced.
4. The author implies that one way that VHS producers won control over the VCR market was by
(A) carefully restricting access to VCR technology
(B) giving up a slight early lead in VCR sales in order to improve long-term prospects.
(C) retaining a strict monopoly on the production of prerecorded videotapes.
(D) sharing control of the marketing of VHS-format VCR's
(E) sacrificing technological superiority over Betaformat VCR's in order to remain competitive in price.
5. The alignment of producers of VHS-format VCR's with producers of prerecorded videotapes is most similar to which of the following?