When Deciding on Which New Products to Develop, a Firm

question 59

Multiple Choice

When deciding on which new products to develop, a firm must devote people, time, and money to designing a new product. Because any firm has only limited resources, it

• A) should wait until its competitors develop a similar product before deciding on devoting resources to its own product development.
• B) is not able to develop more than one new product at a time.
• C) must be certain that the product it chooses to develop will be successful or it will not be able to stay in business.
• D) faces a trade-off because resources used to develop one product will not be available to develop another product.

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Definitions:

Bacon's Rebellion

An armed rebellion held in 1676 by Virginia settlers led by Nathaniel Bacon against the rule of Governor William Berkeley, partly due to discontent with how Native American relations were handled.

Birth Rates

The number of live births per thousand of population per year.

Indenture

A legal agreement, contract, or document, especially one that binds an apprentice to a master.

Planters' Need

Historically refers to the demand for labor, often fulfilled through enslavement, by those owning large agricultural estates, especially in the context of American southern plantations.