MrClean Is an Antibacterial Cleaning Liquid for Home Use

question 158

Multiple Choice

Mr.Clean is an antibacterial cleaning liquid for home use.The manufacturer of Mr.Clean believed the addition of Sparkling Apple-Scented Mr.Clean to the Mr.Clean product line, would be

• A)seen as a discontinuous innovation.
• B)viewed as new from the company's perspective because it is a product line extension.
• C)viewed as a high-risk product line addition because it is new to the market.
• D)defined as new by the Federal Trade Commission for the usual one-year period.
• E)not seen as a new-product because it does not represent a different stock keeping unit.

---

Definitions:

Nonrival

A good or service is nonrival if its consumption by one individual does not reduce its availability to others.

Nonexcludable

A characteristic of public goods: Once a good is produced, no one can be excluded from enjoying its benefits.

Marginal Social Benefit

The additional gain to society as a whole from consuming or producing one more unit of a good or service.

Marginal Social Cost

The additional cost imposed on society as a whole by producing one extra unit of a good or service.