Suppose That a Firm Successfully Introduces a Highly Profitable New

question 270

Multiple Choice

Suppose that a firm successfully introduces a highly profitable new product. If this new product is priced higher than existing substitute products, then the

• A)new product has greater marginal utility than the existing products.
• B)laws of economics have been violated.
• C)new product must have increasing, not diminishing, marginal utility.
• D)existing products were unprofitable to produce.

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