Smith Says She Gets 5 Utils from Consuming the Fifth

question 56

Multiple Choice

Smith says she gets 5 utils from consuming the fifth unit of a good whereas Jones says he gets 10 utils from consuming the fifth unit of a good. It follows that

• A)the fifth unit of the good means more to Jones than Smith.
• B)the fifth unit of the good means more to Smith than Jones.
• C)the fifth unit of the good means twice as much to Jones as it means to Smith.
• D)if the law of diminishing marginal utility holds, both Smith and Jones will get less utility from the sixth unit of the good than the fifth.

Understand the ethical dimensions in marketing practices, including social responsibility and consumer rights.

Realize the significance of creating a positive customer experience as part of the marketing strategy.

Comprehend how marketing strategies are tailored to fit the target audience's needs through product placement and pricing.

Understand the influence of market orientation on corporate strategies and operations.

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Definitions:

Normal Good

A product that sees an increase in demand as people's incomes increase, and a decrease in demand when their incomes decrease.

Housing

Refers to the provision and availability of homes and buildings for habitation by individuals and families.

Utility

A measure of satisfaction or happiness that a consumer derives from the consumption of goods and services.

Consumption Bundle

A mix of products and services selected by a consumer for use at a specific moment.