Assume That an Individual Has to Choose Between Two Options,buying

question 42

Essay

Assume that an individual has to choose between two options,buying a cell phone or buying an iPad.The expected cost of buying a phone is $700 and the expected benefit is $900.The expected cost of buying an iPad is $300 and the expected benefit is $600.How does the individual arrive at the optimal choice if he implements:
a)optimization using total value?
b)optimization using marginal analysis?

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Definitions:

Growth Strategy

A plan for business expansion, which may include entering new markets, launching new products, or increasing market share.

Growth Strategy

A plan of action designed to increase an organization’s market share, revenues, or scale of operations.

Product Development

The process of bringing a new product or service to market, including ideation, design, creation, and marketing stages.

Diversification Strategy

A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.