Suppose That a Firm Successfully Introduces a Highly Profitable New

question 168

Multiple Choice

Suppose that a firm successfully introduces a highly profitable new product.If this new product offers less marginal utility per unit to consumers than existing substitute products, then the

• A)laws of economics have been violated.
• B)new product must have increasing, not diminishing, marginal utility.
• C)existing products were being produced at a loss.
• D)new product has a lower price than the existing substitute products.Difficulty: 02 Medium

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Definitions:

Preoperational Stage

The second stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by symbolic thinking, egocentrism, and a lack of logical reasoning.

Birthday Parties

Celebratory events marking the anniversary of a person's birth, often involving social gatherings, decorations, and customs like cake and gifts.

Conservation

A cognitive principle in child development discovered by Piaget, indicating the understanding that quantity doesn't change despite changes in the shape or appearance of objects.

Piagetian Principle

A concept from Jean Piaget's theory, indicating that cognitive development occurs through a series of stages, characterized by distinct ways of thinking and understanding the world.