The profit-enhancing impact of product innovation tends to be on all of the following, except
A) the firm's revenues.
B) the buyers' utility derived from the product.
C) the firm's cost of production.
D) the attractiveness of the product to buyers.

Question

Quizplus · Accepted Answer

Product innovation may reduce the firm's cost of production by introducing more efficient production processes, but it is not a direct impact on enhancing profits. The other options listed (A, B, and D) all have a direct impact on enhancing profits through increased revenue, increased buyer utility, and increased attractiveness of the product to buyers.

The Profit-Enhancing Impact of Product Innovation Tends to Be on All