If a Major Firm Suddenly Creates a New Product Which

question 73

Multiple Choice

If a major firm suddenly creates a new product which makes the products of its competitors obsolete, this is an example of a force in which type of environment?

• A)general environment
• B)economic environment
• C)task environment
• D)legal environment
• E)political environment

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Definitions:

Excess Capacity

A situation where a firm is producing at a lower level of output than it has the potential to due to insufficient demand.

Average Total Cost

The total cost of production divided by the number of units produced, representing the per unit cost of production.

Economic Usefulness

The degree to which a product or service can satisfy consumers' needs and desires, thus determining its value in the market.

Peyton Manning

A retired American football quarterback who played in the National Football League (NFL), known for his records and time with the Indianapolis Colts and Denver Broncos.