The Leading Cause of New Product Failure Is

question 53

Multiple Choice

The leading cause of new product failure is:

• A)the poor quality of the new product.
• B)the absence of a perceived need by the intended end user.
• C)lack of sufficient advertising of the new product.
• D)high cost of the new product.

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Definitions:

Implicit Costs

Denotes the opportunity costs of utilizing resources owned by the firm for its operations, instead of allocating them elsewhere to earn a return.

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Accounting Profit

The difference between total revenue and explicit costs of a business.

Economic Profit

The profit a company makes after deducting both explicit and implicit costs, reflecting the total opportunity costs of its resources.