The Loss in Sales of an Existing Product Is a Sink

question 53

Multiple Choice

The loss in sales of an existing product is a sink cost when assessing the cost of a new product if:

• A)A competitor's product would have reduced the sales of the existing product.
• B)The existing product is more costly to produce than the new product.
• C)The existing product is less costly to produce than the new product
• D)The loss in any sales should never be considered a sunk cost.
• E)A competitor's product is not expected to create a loss in sales of the existing product.

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Definitions:

Attentional Resources

The cognitive capacity or energy available to a person for processing information and maintaining attention.

Mixed Perceptions

The blending of different sensory inputs or cognitive assessments to form a complex understanding or interpretation.

Automatic Processing

The unconscious, fast, and effortless processing of information, which does not require deliberate thought.

Conscious Awareness

is the state of being consciously aware of one’s surroundings, thoughts, and feelings at any given moment.