A Group of Scientists at a Biotechnology Firm Conducted Extensive

question 38

Multiple Choice

A group of scientists at a biotechnology firm conducted extensive trials in a laboratory for over a decade before creating a formula that could be used to develop a drug to treat cancer.The firm invested a lot of money in these trials with the idea of generating revenue through sales.The method used by the company to develop the new product is best termed as:

• A)licensing.
• B)reverse engineering and improvement.
• C)internal research and development.
• D)brainstorming.
• E)concept testing.

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Definitions:

Profit Maximizing

A strategy or process undertaken by a firm to achieve the highest possible profit from its operations.

Price

The amount of money required to purchase a product or service.

Price Elasticity Of Demand

Percentage change in quantity demanded of a good resulting from a 1-percent increase in its price.

Marginal Revenue

The extra revenue received from the sale of an additional unit of a product or service.