On Earnings Associated with New Products of a Firm, It

question 82

Multiple Choice

On earnings associated with new products of a firm, it is critical that the:

• A) firm's management body has the pressure of steady improvement in earnings per share.
• B) firm does not become solely preoccupied with a short-term focus.
• C) firm does not focus on the ultimate economic contribution.
• D) firm realizes that profitability will not be supported by the stock market in terms of higher share prices over the long term.

---

Definitions:

Supply

the total amount of a specific good or service that is available to consumers.

Inferior Good

A type of good for which demand decreases as the income of the individual increases, inversely related to income.

Normal Good

A good for which demand increases as the income of the consumer increases, reflecting a direct relationship between income and demand.

Income Increases

A rise in the amount of money earned by individuals or households, often measured on an annual basis.