Consumers Value the Product- Specific Services for a New Smartphone

question 73

Multiple Choice

Consumers value the product- specific services for a new smartphone at $30 and the marginal cost to the retailers for providing the product- specific services is $40. If the retailers provide the product- specific services, which of the following is true?

• A)The shift in the market demand will exceed the shift in the market supply.
• B)The shift in the market demand will be exactly double the shift in the market supply.
• C)The shift in the market demand will equal the shift in the market supply.
• D)The shift in the market supply will exceed the shift in the market demand.

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Definitions:

License Fee

A charge paid for obtaining legal permission to carry out a particular activity or to use a particular piece of intellectual property.

Marginal Social Benefit

The additional benefit to society as a whole from the production or consumption of one more unit of a good or service.

Security Guard

A person employed to protect property, assets, or individuals, often through surveillance, patrolling, and enforcing safety protocols.

Public Safety

The protection of citizens from significant danger, injury, damage, or harm, provided by governmental organizations and agencies.