Which of the Following Is NOT One of the Benefits

question 49

Multiple Choice

Which of the following is NOT one of the benefits to a firm of new product development?

• A) reduced costs of production.
• B) satisfying the changing needs of current and new customers.
• C) avoiding market saturation from products that have been on the market for a long time.
• D) creating diversification and reducing risk.
• E) keeping up in a market where sales come mostly from new products.

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Definitions:

Wage Rate

The fixed amount of compensation or payment received by an employee from an employer in exchange for work or services performed.

Labor

Refers to human effort, whether physical or mental, used in the production of goods and services.

Derived Demand

The demand for a good or service that results from the demand for a different, or intermediate, good or service.

Resources

Assets, materials, and human capabilities used to produce goods and services in an economy.