Executives Must Be Careful to Avoid Spending So Much Time

question 56

Multiple Choice

Executives must be careful to avoid spending so much time and effort tracking the actions of ________ that they ignore ________.

• A) competitors; customers
• B) customers; competitors
• C) traditional competitors; new competitors
• D) existing customers; existing competitors

---

Definitions:

Marginal Utility

is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Total Utility

The total satisfaction or benefit received by consuming a given total quantity of a good or service.

Market Equilibrium

A market state where the supply of goods matches demand, with no incentive for price to change.

Total Utility

The overall satisfaction or pleasure a person derives from consuming a certain amount of goods or services.