A Firm Whose Product or Service Is New to the Industries

question 90

Multiple Choice

A firm whose product or service is new to the industries or is itself creating a new industry is called

• A)a new entrant business.
• B)R&D.
• C)test marketing.
• D)a pioneering business.

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Definitions:

Public Good

A public good is a product or service that is non-excludable and non-rivalrous, meaning it can be consumed by anyone without reducing its availability to others.

Nonexcludability

A characteristic of public goods where it is not feasible to exclude individuals from using the good or benefiting from it.

Nonrivalry

A characteristic of certain goods where one person's consumption does not reduce availability to others, often associated with public goods.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction which the parties directly involved in the transaction do not fully account for.