In Terms of New Product Development, Identify an Advantage That

question 61

Multiple Choice

In terms of new product development, identify an advantage that some Japanese firms appear to possess.

• A) Their managers understand the fact that market share will not lead to customer loyalty, which in turn will not lead to profits.
• B) The emphasis on short-term profits by their managers.
• C) Their management is free from the pressure of steady improvement in earnings per share.
• D) The knowledge that profitability in the long run is not supported by the stock market.

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Definitions:

Free Riders

Free riders are individuals who benefit from resources, goods, or services without paying for the cost of the benefit, often leading to inefficiencies in markets or public services.

Efficient Outcome

A state in which resources are allocated in a way that maximizes total surplus; there are no missed opportunities in production or consumption.

Tragedy of the Commons

A situation in which individuals, acting according to their own self-interest, deplete shared resources, resulting in long-term social losses.

Litter

Discarded waste material improperly left in an environment outside designated trash disposal facilities.