A reduction in the sales of existing products caused by the introduction of a new product is an example of:
A) incidental effects
B) opportunity cost
C) sunk cost
D) none of the above

Question

Quizplus · Accepted Answer

This scenario describes incidental effects, which are the unintended consequences of a business decision or action. The introduction of a new product is intended to increase sales, but it can also lead to a decrease in sales of existing products as customers switch to the new product.

A Reduction in the Sales of Existing Products Caused by the Introduction