For jointly owned substitute products,cannibalization leads to MR______MC
A)Being higher than
B)Being lower than
C)Equaling
D)None of the above

Question

​For jointly owned substitute products,cannibalization leads to MR______MC
A)​Being higher than
B)Being lower than
C)Equaling
D)​None of the above

Quizplus · Accepted Answer

Cannibalization occurs when the introduction of a new product reduces the sales of an existing product within the same company. In the case of jointly owned substitute products, if cannibalization occurs, the marginal revenue (MR) of the new product will be lower than the marginal cost (MC) of producing it. This is because the sales of the new product will mostly come from the sales of the existing product, resulting in a lower overall revenue. Therefore, the best answer is B, being lower than.

​For Jointly Owned Substitute Products,cannibalization Leads to MR______MC

For Jointly Owned Substitute Products,cannibalization Leads to MR______MC