In the New Products Process, Market Testing Should Typically Be

question 17

Multiple Choice

In the new products process, market testing should typically be carried out:

• A) in the concept stage as the idea needs to be tested for practicality.
• B) before the project evaluation stage begins.
• C) as soon as techniques that will tell us what we need to know are found.
• D) once the ideation phase begins.

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Definitions:

Constant Returns

A situation in production where increasing all inputs by a certain proportion results in an increase in outputs by the same proportion.

Isoquants

Curves on a graph that represent combinations of factors of production that yield the same level of output.

Scale

The size or level of activity of a project, business, or operation, which can significantly affect its efficiency, costs, and profitability.

Decreasing Returns

A principle where an increase in the amount of one factor of production, while other factors are held constant, results in a lower ratio of output per input.