When a Firm Introduces a New Product and Some of the New

question 51

Multiple Choice

When a firm introduces a new product and some of the new product's sales come at the expense of the firm's existing products,this is known as:

• A) sunk costs.
• B) incremental costs.
• C) marginal costs.
• D) cannibalization.

---

Definitions:

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Authority Figure

An individual who holds power or influence in a particular context, often due to their position, expertise, or reputation.

Group Standard

The norms or expectations that a group holds for the behavior, attitudes, and appearance of its members.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.