A cost of estimating demand functions particular to the use of market experiments is:
A) the possibility that customers may be lost and profits cut as a result of the experiment.
B) the shipping costs to markets across the country.
C) the need to determine the profit-maximizing discount.
D) the cost of collecting data.
E) none of the above.

Question

Quizplus · Accepted Answer

Market experiments can lead to changes in customer behavior, potentially resulting in lost customers and reduced profits, which is a specific cost associated with this method of estimating demand functions.

A Cost of Estimating Demand Functions Particular to the Use