Why might product development be efficient and why might it be inefficient?
What will be an ideal response?
Product development might be efficient if the development represents actual improvements to the product and not simply the perception of improvement. The value of these new innovations to the consumer is the marginal benefit or the extra amount consumers are willing to pay to have the new product. If the marginal benefit to the consumer is equal to the marginal cost of product development, then development is efficient.
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According to this Application, if the volatility of energy prices led to expectations of declining real GDP, investment spending at that time would tend to decrease
This relationship between the decrease in investment spending and the expected decline in real GDP would be expressed by the A) present value theory. B) liquidity principle. C) accelerator theory. D) real-nominal principle.
The term "dirty float" is used to describe:
a. international agreements about fishing rights that were developed in the 1960s. b. the system of exchange rates, which relies primarily on market forces with limited government intervention. c. the inflation that followed price controls implemented by the Nixon administration. d. unsound monetary policy.
The idea that the desires of resource suppliers and producers to further their own self-interest will automatically further the public interest is known as:
A. the invisible hand. B. consumer sovereignty. C. profit maximization. D. derived demand.
he price at the intersection of the ______ curve and the ______ curve is called the equilibrium price.
a. individual supply; market demand b. individual supply; individual demand c. market supply; individual demand d. market supply; market demand