Cannibalization is:
a. Reducing the sales of own firm
b. Improving quality over a rival's product
c. Reducing costs
d. Increasing one's output to reduce sales of another firm
Question 2
Which of the following is not an assumption of the linear breakeven model:
a. constant selling price per unit
b. decreasing variable cost per unit
c. fixed costs are independent of the output level
d. a single product (or a constant mix of products) is being produced and sold
e. all costs can be classified as fixed or variable
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