Use the Following to Answer Questions

question 1

Multiple Choice

Use the following to answer questions :
Figure 7A-2
-In Figure 7A-2, assuming that the price of inputs are equal and that doubling all inputs doubles output, what is the lowest possible cost to produce Q = 150?

• A)$12
• B)$16
• C)$18
• D)$24
• E)None of the above.

Evaluate the benefits and drawbacks of test marketing versus launching based on experience or instinct.

Recognize the role and characteristics of innovators in the diffusion of innovations curve.

Identify the most critical step in the new product development process and justify why.

Understand the dynamics of competitive responses in product marketing and development.

---

Definitions:

Supply Schedule

A table that shows the relationship between the price of a good and the quantity supplied.

Competitive Market

A market structure characterized by many sellers and buyers, free entry and exit, and products that are similar but differentiated.

Going Price

The current market rate at which a particular good, service, or commodity can be bought or sold.

Market

A system or arena in which commercial dealings are conducted, or where supply meets demand.