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Under What Circumstances Might It Be Wise for a Company

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Under what circumstances might it be wise for a company to invest in a test market?
when a new product requires a major investment
when the product is not working well
when management is sure of the marketing program
when the product risk is very low
when the cost of new-product development is very low


Definitions:

Economic Efficiency

A condition where resources are allocated in a way that maximizes the production of goods and services.

Political Power

The authority or influence that individuals or groups hold within a political structure.

Sherman Act

An antitrust federal statute passed in 1890 which prohibits certain business activities that reduce competition in the marketplace, including monopolies.

Felony

A serious crime, such as murder, rape, or robbery, that is punishable by imprisonment for more than one year or death.

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