A New-Product Innovation That Is Consistent with the Values and Experiences

question 3

Multiple Choice

A new-product innovation that is consistent with the values and experiences of potential adopters and attracts new buyers at a relatively rapid rate is said to have high _____.

• A) complexity
• B) observability
• C) compatibility
• D) transparency

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Definitions:

Accounting Profits

The difference between total revenue and explicit costs, representing the net income shown on a company's financial statements.

Implicit Costs

The opportunity costs associated with a company's use of resources that it owns, representing the potential income lost by not using those resources in an alternative way.

Total Revenues

The overall sum of money earned by a business from its sales of goods or services, calculated without deducting any expenses.

Marginal Product

The incremental increase in output resulting from the use of one additional unit of a resource, while keeping other resources constant.