Even If They Succeed, New-To-The-World Products Are

question 11

Multiple Choice

Even if they succeed, new-to-the-world products are

• A) not always profitable.
• B) not adopted by everyone at the same time.
• C) sometimes copycat brands.
• D) not subject to the law of first movers.
• E) typically very short-lived.

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Definitions:

Social Cost

The total cost to society, including both private and external costs, of producing a good or service.

Private Cost

The costs directly incurred by individuals or companies involved in conducting an economic activity, excluding any external effects on others.

External Cost

A cost of a transaction that affects someone who did not choose to incur that cost, often associated with negative side effects of economic activities not reflected in market prices.

Social-Cost Curve

A graphical representation showing the total cost to society of producing various levels of a particular good or service, including both private costs and external costs.