17. Which of the following is a false statement about the goals of management? A. Management's concern is that a union will crea
te higher costs in wages and benefits, as well as raise the risk of work stoppages. B. Management's goals continue to emphasize restraining costs and improving output. C. Management prefers to increase wages and benefits and allow flexibility of work rules and schedules. D. Management goals are to increase the organization's profits.
The answer is: B.) XYZ's product is a close substitute for the locally available goods.
Explanation:
A substitute product can be defined as a good a consumer perceives as similar or comparable to another good (e.g. cow and chicken meat). Generally speaking, when the price of one of these goods increases, the demand for its substitute good increases.
In this case, Darren believes that since XYZ´s product is cheaper it should sell better than its competition (close substitute goods).