One of the Potential Benefits to a Firm of Introducing

question 64

Multiple Choice

One of the potential benefits to a firm of introducing new-to-the-world products or services is

• A) cost savings.
• B) late majority marketing.
• C) establishing a completely new market.
• D) the ability to avoid paying pioneers for new product development.
• E) capitalizing on existing consumer preferences.

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Definitions:

Wheat Spot Price

The current market price at which wheat can be bought or sold for immediate delivery.

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Contango

A situation in futures trading where the future price of a commodity is higher than the spot price, often indicating expectations of rising prices.

Natural Hedgers

Entities or individuals who inherently have an opposite risk exposure compared to their needed market position, allowing them to hedge their risks without having to use derivative products.