When a Well-Established Firm Has Developed a New Product as Part

question 38

Multiple Choice

When a well-established firm has developed a new product as part of its growth strategy,it may be required to find new retailers to carry the new product.One of the critical factors in choosing new retail partners will be:

• A) the power of the brand.
• B) its overall reputation as a manufacturer.
• C) where customers might expect to find the manufacturer's products.
• D) All of these.
• E) None of these is particularly important.

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Definitions:

Efficiency Loss

The decrease in economic efficiency resulting from the inability to reach or achieve the equilibrium for a product or service.

Sacrificed Output

The production or output that is given up as a consequence of choosing one option over another, often discussed in opportunity cost analysis.

Tax

A compulsory financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Net Value

Net value is the difference between the total assets and total liabilities of a company or individual, indicating the actual worth.