In the Context of Testing a New Product, Which of the Following

question 2

Multiple Choice

In the context of testing a new product, which of the following is true of test marketing?

• A) It refers to a type of market testing in which a representative piece of the total market is chosen for a dress rehearsal.
• B) It refers to a type of market testing that involves the sale of a (primarily) consumer product by a maker directly to a consuming unit.
• C) It refers to a type of market testing that involves presenting a product to customers to find out if they would buy the product if it were actually available.
• D) It refers to a type of market testing in which each store selling a product is used as a mini-city instead of using whole cities.

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Definitions:

Output

The total amount of goods or services produced by a company or country, usually measured over a specific period of time.

Total Revenue

The full amount of financial receipts a corporation garners from transactions or services provided in a specific time frame.

Marginal Revenue

The additional income that is gained from selling one more unit of a good or service.

Non-discriminating Monopolist

A monopolist that charges all consumers the same price for its product.