Process Design Is Required Only When New Products or Services

question 6

True/False

Process design is required only when new products or services are planned.

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Definitions:

Barrier to Entry

Factors that make it difficult for new firms to enter a market, which can include high startup costs, access to technology, and strict regulations.

Inelastic Demand

A situation where the demand for a product does not change significantly in response to price changes.

Collusion

An agreement, usually illegal, between rivals in which they decide not to compete with each other, often resulting in higher prices or restricted supply of products or services.

Rule-of-thumb

A practical principle that is not strictly accurate in all cases but is sufficient for most circumstances.