Which of the Following Statements Is True of the Idea

question 1

Multiple Choice

Which of the following statements is true of the idea generation stage in the new product development process?

• A) The purpose of idea generation is to reduce the number of ideas to the least possible number.
• B) Truly innovative companies rely exclusively on a single source for new product ideas.
• C) Customers are the least important sources of new product ideas.
• D) Truly innovative companies develop extensive innovation networks that capture ideas and inspiration from every possible source.
• E) Truly innovative companies seldom rely on customers and the general public for ideas.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to supply a good for and the actual amount received by them when they make the sale.

Consumer Surplus

The divergence between the expected payment by consumers for a product or service and the actual payment made.

Producer Surplus

The difference between the amount producers are willing and able to supply goods for versus the amount they actually receive due to market prices.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net gain to society from the production and consumption of goods and services.