What Is Product Cannibalization

question 238

Multiple Choice

What is product cannibalization?

• A) the expected outcome from the implementation of market penetration
• B) the erosion of a competitor's market share
• C) the erosion of an equity brand due to the brand strategy of a competitor
• D) the erosion of sales due to other products in the same product line

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Definitions:

Unit Price

The cost per unit of a product or service, making it easier to compare the value of similar items.

Market Price

The current market price for buying or selling an asset or service in an open exchange.

Purely Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and free entry and exit of firms.

Short Run

A period in which at least one factor of production is fixed, affecting the ability of a business to increase output in response to increased demand.