Which of the Following Is a Major Disadvantage of the Product

question 60

Multiple Choice

Which of the following is a major disadvantage of the product life-cycle theory introduced by Vernon?

• A) The theory's arguments seem ethnocentric and increasingly dated.
• B) The theory failed to explain the dominance of developed nations.
• C) The theory applies only when a poor nation invents a new product.
• D) The theory cannot be used to explain the production of luxury products.

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Definitions:

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.

Variable Cost Per Unit

The cost associated with producing one additional unit of a product, which can change depending on the level of production or sales.

Cost Volume Profit Analysis

An accounting technique used to determine how changes in costs and volume affect a company's operating income and net income.

Selling Price Per Unit

The amount of money charged to the customer for one unit of a product or service.