Competitors Are Strongly Motivated to React to New Product Introductions

question 72

Multiple Choice

Competitors are strongly motivated to react to new product introductions in their market when:

• A)the market is experiencing a low rate of growth.
• B)the new product represents a major threat to their market.
• C)the new product targets a niche markets.
• D)all of the above.
• E)(a)and (b)only.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choice.

Monetary Payments

Transactions involving the transfer of money in exchange for goods or services.

Price-Taker Market

A competitive market situation where individual sellers or buyers have no influence over the market price of a product.

Market Price

The current price at which an asset or service can be bought or sold in a given market.