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.

---

Definitions:

Legal Costs

Expenses incurred by individuals or businesses for legal services, which can include lawyer fees, court fees, and other related costs.

Patent Infringement

The act of utilizing a patented invention without permission from the patent holder.

Intangible Assets

Non-physical assets that represent a value to the company, such as trademarks, patents, and goodwill.

Amortizing

Amortizing involves gradually paying off a debt over time in regular payments that cover both principal and interest.