Which of the Following (If Any) Is NOT a Reason

Multiple Choice

Which of the following (if any) is NOT a reason that counterfeit production is problematic for the firm?

A) Leads to lost sales as authentic products are crowded out of the market by fake products
B) Results in lost goodwill for the owner of the intellectual property if the product does not perform according to consumer expectations
C) Increases the firm's cost of operation as resources must be allocated to monitoring and policing the market for pirated products
D) Dampens the incentive for innovation
E) Results in the firm's having to choose a more expensive hierarchical entry mode