If a New Product Concept Gets Positive Evaluations from Potential

question 49

Multiple Choice

If a new product concept gets positive evaluations from potential customers during concept testing,the next step for a firm is

• A) market testing.
• B) product development.
• C) brainstorming.
• D) reverse engineering.
• E) launching of the product.

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Definitions:

Average Costs

The total cost of production divided by the number of units produced, giving the cost per unit of production.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase and may even decrease.

Diseconomies of Scale

A phenomenon where production costs per unit increase as a firm's output increases, often due to inefficiencies that arise when companies become too large.

Smaller Percentage Increase

Refers to a rate of increase that is less significant or lower in proportion compared to another.