All of the Following Statements Identify Benefits from the Existence

question 49

Multiple Choice

All of the following statements identify benefits from the existence of competitors EXCEPT?

• A) Competitors may share the costs of market and product development.
• B) Competitors help legitimize new technologies.
• C) Competitors serve less-attractive segments or lead to more product differentiation.
• D) Competitors fracture the target market.
• E) Competitors may help increase total demand.

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Definitions:

Study Time

A period dedicated to academic work or learning outside of formal teaching sessions.

Marginal Analysis

A review of the extra advantages gained from an activity in relation to the extra expenses it generates.

Benefit

The advantage or gain received from a decision, action, or policy, often used in the analysis of choices in economics.

Bounded Rationality

A basis for decision making that leads to a choice that is close to but not exactly the one that leads to the best possible economic outcome; the “good enough” method of decision making.