If Consumers Are Loyal to the Products of an Existing

question 154

Multiple Choice

If consumers are loyal to the products of an existing firm,this loyalty may

• A)reduce the incentives for the firm to invest
• B)result in more responsive management and better quality products
• C)reduce the demand for imported goods
• D)serve as a barrier to new entry into the market
• E)force the firm to produce at higher costs

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Definitions:

Denying Existence

The refusal to acknowledge the reality or presence of something, often as a defense mechanism.

Contingency Plan

A strategy prepared to address unexpected events or emergencies, minimizing negative effects and maintaining operational continuity.

Back-Up Plan

A prearranged alternative set of actions or resources available in case the original plan fails or encounters problems.

Executive Reality Check

A critical evaluation or assessment meant to provide company leaders with a clear and accurate understanding of the business's actual situation as opposed to perceived notions.