Identify a Shortcoming of Giving the Responsibility of New Product

question 26

Multiple Choice

Identify a shortcoming of giving the responsibility of new product development to the product managers of a company.

• A) They would not be familiar with the industry standards.
• B) Product managers are often busy managing existing lines.
• C) Product managers would not have an operational focus.
• D) They will find it difficult to gain support from employees.
• E) Product managers are less likely to use participative management.

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Definitions:

Output

The total amount of goods or services produced by a company or industry over a specific period.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production.

Income Elasticity of Demand

A measure of how the quantity demanded of a good changes in response to a change in consumers' income.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, contrasting with normal goods.