A team of engineers is doing a cost-benefit analysis to determine whether they should develop new technology. What are two risks to company profits
they should include in their analysis?

1) The risk of high cost due to increased resource requirements

2) The risk of late entry into the (a changed) market

Explanation:

The analysis being performed by the engineers = A cost benefit analysis to determine if a new technology should be developed

A cost-benefit analysis is a process of appraising or measuring the advantages, benefits of a policy, action or decision, so as to find the (equilibrium) balance point between the costs of the decision or action

The risk to be considered are;

1) The risk of high cost due to increased resource requirements

The increased cost required for the development of the new technology now which due to the unlikely existence of a similar invention in the market that will give them an advantage of increased profits

2) The risk of late entry into the (a changed) market

The changes in the consumer preferences, market landscape, and the likely introduction into the market of a similar invention by the competition in the near future which will reduce the amount of profits that can be gained from the invention