Let MU Equal Marginal Utility and P Equal Price

question 209

Multiple Choice

Let MU equal marginal utility and P equal price. If the MU of root beer per dollar spent on a unit of root beer is greater than the MU of candy bars per dollar spent on a candy bar, the consumer

• A) is maximizing utility.
• B) should spend more on candy bars and less on root beer.
• C) should spend more on root beer and less on candy bars.
• D) is maximizing marginal utility.

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Definitions:

Team Selling

A sales strategy where a group of individuals with different expertise collaborates to sell a product or service to better meet customer needs.

New-Customer Acquisition

The process of attracting and converting prospects into new customers for a business.

Sales Force Management

The planning, direction, and control of personal selling activities, including recruitment, selection, training, motivating, compensation, and evaluation as they apply to the sales force.

Personal Selling Activities

Direct interactions between sales representatives and potential customers aimed at making a sale and building customer relationships.