Several Factors Explain Why a Consumer Would Be Reluctant to Adopt

question 160

Multiple Choice

Several factors explain why a consumer would be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a value barrier, which occurs when

• A) there are physical, economic, or social risks.
• B) there are cultural differences.
• C) the financial commitment is too great.
• D) there is no incentive to change.
• E) the product is not consistent with existing habits.

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Definitions:

Natural Monopoly

A market condition where a single firm can supply a product or service to an entire market at a lower cost than two or more firms could, often due to high infrastructure or fixed costs.

Per-unit Costs

The average cost incurred in the production of one unit of a good or service, including both fixed and variable costs.

Number Of Producers

The total count of entities or individuals that manufacture or produce goods and services within an economy.

Park Funding

Financial resources allocated for the maintenance, operation, or development of public parks and recreational areas.