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Innovative products have __________a.high profit marginb.low salesc.low profit margind.high market share

Question

Innovative products have __________

a. high profit margin
b. low sales
c. low profit margin
d. high market share

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Solution

In the context of innovative products, the most accurate completion for the statement would be "a. high profit margin."

Innovative products typically represent breakthrough ideas or technologies that often meet unique market needs or create new markets. Such products can charge premium prices because they offer features or benefits that are not available from existing products, leading to higher profit margins.

While innovative products may initially have low sales as they establish themselves in the market, once they gain traction, they can achieve high market share. Low profit margins would not generally be associated with successful innovative products because their uniqueness and novelty allow for higher pricing. Therefore, option (a) high profit margin is the most suitable choice.

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