Final answer:
The claim about line extensions being less common, more expensive, and riskier is false because they often leverage established brand equity and production channels, making them less risky and costly than new product developments.
Step-by-step explanation:
The statement that line extensions are less common than other new products because line extensions are more expensive and more risky is false. A line extension refers to an addition of new products or variations in an existing product line to target different customer segments or to increase market share. In fact, line extensions may involve less risk and expenditure compared to completely new product developments. This is due to leveraging the existing brand's equity and utilizing the established production and distribution channels. Line extensions can refresh the brand and make the most of the economies of scale, avoiding duplicate investments in physical capital for production.