Based on the Information Above,Tata Most Likely Believed That as a Result

question 10

Multiple Choice

Based on the information above,Tata most likely believed that as a result of recent changes in India's economy,what would be true of a growing number of Indian consumers?

• A) They had become even more cost-conscious than ever before.
• B) They would be willing and able to spend 150,000 rupees on a car.
• C) They would choose a vehicle with high fuel efficiency primarily because of concern about the natural environment.
• D) They will eventually prefer models similar to those currently available in the U.S. and Europe.
• E) They will place a higher value on car safety than fuel economy.

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Definitions:

Long-Run Adjustments

The process by which firms adjust their production levels, input mixes, and operations to reflect changes in the market or economic conditions over a longer period.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a utility level equal to the cost of producing it.

Marginal Benefit

The incremental enjoyment or advantage received from the consumption or creation of one more unit of a good or service.

Minimum Price

The lowest price at which a product or service can be sold, often regulated by governmental policies or agreements to ensure fair competition and to protect consumers or producers.