Why Is Successful New- Product Introduction Becoming Increasingly More Difficult

question 80

Multiple Choice

Why is successful new- product introduction becoming increasingly more difficult?

• A)New- product development costs are so low that any company with a good idea can create a new product.
• B)Government regulations have become so stringent that new products are usually years in the testing stage while waiting approvals.
• C)Products become outdated at a much faster rate than ever before.
• D)Creating new products is not costly.
• E)Many international companies are engaging in product innovation.

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Definitions:

Standby Customers

Customers who are available to purchase or subscribe to a service on an as-needed basis, often used in context with utilities or telecommunications.

Profit

The financial gain obtained when the revenue earned from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Economies of Scale

The cost advantage that arises with increased output of a product, leading to a reduction in the per-unit cost of production.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced, indicating the cost per unit of output.