Which of the Following Is NOT an Example of Incremental

question 4

Multiple Choice

Which of the following is NOT an example of incremental change?

• A) A motel switches to a less expensive detergent for washing sheets and towels.
• B) A national chain of coffee stores tests customer response to a new coffee drink by introducing it in a limited number of stores.
• C) New owners buy an international company and take steps to cut one million dollars from its annual operating expenses over the next six months.
• D) A radio station replaces its late-night deejay with a younger deejay to see if they can attract a larger listening audience.
• E) All of these are examples of incremental change.

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Definitions:

Aluminum

A lightweight, silvery-white metallic element used in a wide range of applications including transportation, construction, and packaging due to its durability and resistance to corrosion.

Marginal Revenue

The additional income from selling one more unit of a good; sometimes equal to price.

Pure Monopoly

A market structure where a single seller controls the entire supply of a product or service, with no close substitutes available.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, leading to some degree of market power in setting prices.