One of the Potential Benefits to a Firm of Introducing

question 21

Multiple Choice

One of the potential benefits to a firm of introducing new-to-the-world products or services is

• A)cost savings.
• B)late majority marketing.
• C)establishment of a completely new market.
• D)the ability to avoid paying pioneers for new product development.
• E)the ability to capitalize on existing consumer preferences.

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Definitions:

Marginal Cost

The funding necessary to manufacture an extra unit of a good or service.

Average Variable Cost

The total variable costs (costs that change with production volume) divided by the quantity of output produced.

Market Price

The going rate at which a product or service is available for buying or selling in a particular market.

Pure Competition

A market structure characterized by an extremely high level of competition, where no single buyer or seller has the power to influence prices or market conditions.