Other things being equal, the rate of new-product development seems to be greater in countries where
A) more money is spent on marketing instead of applied research.
B) consumers demand cheaper products since they are not affluent.
C) competition between firms is intense.
D) pioneering costs outweigh the disadvantages of being a second mover.
E) a large change in prices of a product only produces a small change in demand.

Question

Quizplus · Accepted Answer

Intense competition between firms drives innovation and the development of new products as companies strive to differentiate themselves and capture market share.

Other Things Being Equal, the Rate of New-Product Development Seems