According to the principle of diminishing marginal utility, what is the best way for a business owner to maximize the number of units sold to each customer?
a. Lower the price on the first unit.
b. Lower the price on each additional unit after the first.
c. Increase the number of substitutes offered at the same price.
d. Increase the number of substitutes offered at a higher price.
b. Lower the price on each additional unit after the first.
You might also like to view...
In the above figure, if the economy is at point A, which of the following is TRUE?
A) There is a recessionary gap. B) There is an inflationary gap. C) Point A is the long-run equilibrium point. D) None of the above answers are correct.
Why do firms in a monopolistically competitive industry advertise?
What will be an ideal response?
An open market ________ by the Fed decreases interest rates and ________ investment.
A. purchase; increases B. purchase; decreases C. sale; increases D. sale; decreases
Phillip Crosby asserts that quality is free. Is he right?
What will be an ideal response?