A Firm Must Decide Whether to Launch a New Product

Multiple Choice

A firm must decide whether to launch a new product before knowing whether sales demand will be strong or weak. In addition, depending on how demand unfolds, the firm has the flexibility to set either a high price or a low price. The best order in which to draw the firm's decision tree is:

A) launch, set price, and observe demand.
B) observe demand, launch, and set price.
C) launch, observe demand, and set price.
D) set price, observe demand, and launch.
E) set price, launch, and observe demand.