_____ Is a Limited Introduction of a Product and a Marketing

question 5

Multiple Choice

_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

• A) Use testing
• B) Test marketing
• C) Concept testing
• D) Laboratory testing
• E) Discontinuous innovation

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Definitions:

Economic Profit

The difference between the total revenue earned by a firm and the total cost of inputs, including both explicit and implicit costs.

Implicit Costs

The opportunity costs of utilizing resources owned by the firm that could have been employed for other purposes.

Explicit Costs

Direct, out-of-pocket payments for resources employed in the production of goods or services, easily identified and measured.

Capital Intensive

A description of industries or businesses that require large amounts of capital investment compared to labor.