When Friends of Brian Richardson Went to the Carnival,they Always

question 101

Multiple Choice

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.com for $5.95.
-Refer to Amusement Park Games.In terms of the new-product development process,Richardson's several unsuccessful attempts to put his thoughts on paper are an example of which of the following?

• A)idea screening
• B)idea generation
• C)test marketing
• D)commercialization

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Definitions:

Socially Optimal Quantity

The level of output where the marginal benefit to society of consuming another unit equals the marginal cost of producing it, leading to the most efficient allocation of resources.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction or activity.

Subsidy

A financial aid provided by the government or a public body to reduce the cost or price of goods and services, encouraging production or consumption.

Command-And-Control Policy

It refers to environmental policies that rely on regulations (permission, prohibition, standard setting, enforcement) rather than economic incentives or market solutions.