The holder of the patent on a new energy efficient,long lived light bulb that gives off a warm yellow light and does not contain mercury intends to manufacture and market it over the internet.Which of the following possibilities represent real options?
A)Sell the patent to a major manufacturer after 2 or 3 years.
B)Expand production and sell the product through major retailers.
C)Delay the launch of the website until energy prices rise.
D)All of the above.

Question

Quizplus · Accepted Answer

All of the options mentioned are real options that the holder of the patent can consider. Selling the patent to a major manufacturer would offer a lump sum payment, while expanding production and selling through major retailers would offer a larger customer base. Delaying the launch of the website until energy prices rise would allow the product to be more competitive in the market. All of these options can potentially increase profits and market share. Therefore, the best choice would be to consider all of the above options.

The Holder of the Patent on a New Energy Efficient,long