Which of the following is most likely a result of regulations set up by the Food and Drug Administration and the Consumer Product Safety Commission?
A) The time between new product ideas and their introduction to the market has decreased.
B) Annual spending on research and development has decreased.
C) Research costs for companies have risen.
D) Product innovation has significantly declined.
E) Marketers have grown increasingly apathetic toward meeting safety standards.

Question

Quizplus · Accepted Answer

The regulations set up by the Food and Drug Administration (FDA) and the Consumer Product Safety Commission (CPSC) often require extensive research and testing to ensure the safety and efficacy of products. As a result, research costs for companies may rise, as they need to invest more in research and development to comply with the regulations. However, this does not necessarily mean that the time between new product ideas and their introduction to the market has decreased, annual spending on research and development has decreased, or that product innovation has significantly declined. In fact, the regulations may stimulate innovation as companies develop new and improved products to meet the safety standards set by the FDA and CPSC. Additionally, marketers are not likely to grow apathetic toward meeting safety standards, as failure to comply with the regulations can result in legal and financial consequences.

Which of the Following Is Most Likely a Result of Regulations