O Topic Week 11 Discussi × I+ hondo.instructure.com e.com/courses/2929/discussio
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O Topic Week 11 Discussi × I+ hondo.instructure.com e.com/courses/2929/discussion, topics/4085 1/submit You are also to required to give a weekly response to at least 2 of your classmate's postings. Each response to a posting must be at least 3-4 sentences long. Your replies to 2 of your classmates are due on Sunday by 11:59 PM Watch the instructional videos and answer the following questions. 1. What are the benefits and shortcomings of product innovation? Use the following examples below to guide your thinking and please feel free to add your own: a. Hydrox and Oreos b. RC Cola and Coca-Cola C. iPhone and Samsung d. HBO and Netflix 2. When is it beneficial for the individual firm or producer to shut down production? Unread Subscribe ReplyExplanation / Answer
The concept of product innovation is justified on the ground that it leads to a improvised product easing a customer's needs and also making a world a better place to live.It is not only about improving the existing design or functionalities of an already existing product in the market,but also making it a lot more user friendly and sometimes pocket friendly too.For example Apple first introduced an iphone in the market which gave an user the ease of a touchscreen.Later on android developers like samsung came up with different features and models which were a lot pocket friendly than an iphone.Similarly,earlier watching our favourite shows or movies were complete dependent on TV timings but with netflix or other online live streaming websites we can watch our favourite shows as per our convenient time.RC Cola happened to be one of the very popular names once upon a time but its popularity ended over time because of its owners' misjudgements and some lack of timely and proper initiatives.On the other hand its main competitor Coca cola won the battle with the right kind of branding and marketing strategies.But there is another side of the story too.Product innovation sometimes leads to a lot of money and time wastage in terms of R&D if the innovation goes wrong.On the other hand a rival can come up with a better and cheaper product in the market while the other company has invested a lot of money in R&D.
2.In the short run a company is advisable to operate till it can recover its average variable cost i.e, price per unit (average revenue) > AVC.If p<AVC then it reaches the shut down point.In the long run a firm can operate as long as it is earning normal profit.
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