Forward-Looking Companies Have Discovered That Their Own Organization Does Not

question 103

Multiple Choice

forward-looking companies have discovered that their own organization does not generate enough useful new-product ideas.This has caused them to find new product ideas by developing strategic relationships with outside individuals and organizations.This practice is referred to as __________.

• A) innovation alliances
• B) open innovation
• C) open collaboration
• D) "piggy-back thinking"
• E) stakeholder cooperation

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Definitions:

Concentration Ratio

A measure used in economics to assess the degree of concentration of market power in an industry, often expressed as the percentage of market share held by the top firms.

Excess Capacity

A situation where a firm or an economy can produce more goods or provide more services than currently being produced, due to unused resources.

Average-Total-Cost Curve

A graphical representation showing the average total cost per unit of output at different levels of production.

Monopolistically Competitive

Pertaining to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power due to product differentiation.