A scouting option is used when market uncertainty is high and technical uncertainty is low.

Question

Quizplus · Accepted Answer

This statement is true. When market uncertainty is high (meaning there is uncertainty about the demand for a product or service in the market), but technical uncertainty is low (meaning there is a clear understanding of how to produce the product or service), scouting options can be useful as they involve gathering information about potential markets before making a significant investment.

A Scouting Option Is Used When Market Uncertainty Is High