According to the Law of Diminishing Marginal Rate of Substitution

question 87

Multiple Choice

According to the law of diminishing marginal rate of substitution,

• A)as consumption of good A increases, other things constant, its marginal utility declines
• B)as consumption of good A increases, other things constant, one is willing to give up increasing amounts of good B to get another unit of good A
• C)as consumption of good A increases, other things constant, the amount of good B one is willing to give up to get another unit of good A falls
• D)the indifference curve's slope increases as more of the good on the horizontal axis is consumed
• E)indifference curves intersect when marginal utilities fall

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Definitions:

Value-Based Marketing

A marketing strategy focused on delivering products and services that provide high value, aligning marketing efforts with customer values and needs.

SWOT Analysis

A method of conducting a situation analysis within a marketing plan in which both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats are examined.

Strategic Business Unit

A semi-autonomous division or unit of a company that focuses on a specific market or product line, having its own strategy and objectives.

Lifetime Value

The total net profit a company expects to make from a customer over the entire duration of their relationship.