Product Innovation Will Be Successful Only If It Makes the Product's

question 58

Multiple Choice

Product innovation will be successful only if it makes the product's

• A)marginal utility increase.
• B)price decrease.
• C)marginal-utility-to-price ratio increase.
• D)marginal-utility-to-price ratio decrease.

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Definitions:

Selective Benefits

Advantages or perks provided by an organization or a policy that are available only to its members or a specific group of people.

Free-Rider Problem

A situation in which individuals receive benefits from a public good without contributing to its cost, leading to underprovision of those goods.

Selective Benefits

Selective benefits are advantages or perks provided exclusively to members of a group, organization, or society, rather than to the general public.

Collective Goods

Benefits or goods that are shared and cannot be denied to anyone within a community or society, such as clean air or public safety.