A reduction in the sales of an existing product caused by the introduction of a new product is an example of a(n):
A) sunk cost.
B) opportunity cost.
C) erosion.
D) fixed cost.

Question

Quizplus · Accepted Answer

Erosion refers to the decrease in sales and, consequently, profits of an existing product due to the introduction of a new product within the same market by the same company. This is a common concern when a company launches a product that might compete with its own offerings.

A Reduction in the Sales of an Existing Product Caused