Which of the Following Statements Is NOT True Regarding New

question 5

Multiple Choice

Which of the following statements is NOT true regarding new product categories?

• A)The risks and uncertainties associated with various new product categories differ and the categories need to be managed differently.
• B)All new product categories are necessarily innovations.
• C)Many new products can be considered additions to existing product lines or improvements and revisions to existing products.
• D)Launching new-to-the-world product means risk.

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Definitions:

Willing To Pay

The maximum amount an individual is prepared to spend to purchase a good or service or to avoid something undesirable.

Moral Hazard

A situation in economics where one party is willing to take risks because the costs that could result will not be borne by that party.

Behavior Alteration

The modification or change in individual or group behaviors, often initiated by interventions or environmental modifications.

Asymmetric Information

A situation where one party to a market transaction has more information about a product or service than the other. The result may be an under- or overallocation of resources.