Which of the Following Is NOT a Factor That a Manager

question 24

Multiple Choice

Which of the following is NOT a factor that a manager should bear in mind when estimating a project's revenues and costs?

• A) Sales of a product will typically accelerate, stabilize, and then decline as the product becomes outdated or faces increased competition.
• B) A new product typically has its highest sales immediately after release as customers are attracted by the novelty of the product.
• C) The prices of technology products tend to fall over time as newer, superior technologies emerge and production costs decline.
• D) Prices and costs tend to rise with the general level of inflation in the economy.

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Definitions:

Marginal Benefit

The additional satisfaction or utility gained by consuming an extra unit of a good or service.

Diamond

A naturally occurring gemstone composed of carbon, known for its hardness and brilliance, often used in jewelry.

Marginal Analysis

The examination of the costs and benefits of a small (marginal) change in the production of goods or services.

Wheat Farmer

An individual or entity engaged in the cultivation of wheat crops for consumption or sale.