The Advantages of Outsourcing New Product Development Include Which of the Following

question 67

Multiple Choice

The advantages of outsourcing new product development include which of the following:

• A) Product quality and performance parameters are difficult to guarantee
• B) Confidentiality can be difficult to maintain
• C) Subcontractors bring broader technical bases to bear on new product development issues
• D) Locating and selecting firms with appropriate technical expertise can be problematic

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Definitions:

Average Total Cost

The total cost of production divided by the total output, or the cost per unit of output on average.

Pharmaceutical Company

A commercial business that researches, develops, makes, and sells pharmaceutical drugs and treatments.

Average Revenue

The total revenue divided by the quantity sold, representing the amount of revenue generated per unit of output sold.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.