Girls Can Log onto Www

question 16

Multiple Choice

Girls can log onto www.Barbie.com and design their own special Barbie doll. They can choose the doll's skin tone, hair colour, clothes, accessories, and name. The doll is created to the new owner's specifications and mailed to her by Mattel. With this doll, what is Mattel using?

• A)market aggregation
• B)niche marketing
• C)mass customization
• D)disintermediation

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Definitions:

Contract Curve

In economics, it represents the set of optimal points of exchange between two parties, where no further mutual benefit can be achieved through trade.

Edgeworth Box

A graphical representation of the trading possibilities and equilibrium between two individuals with fixed amounts of two goods.

Utility Function

A mathematical model in economics that represents consumer preferences over a set of goods and services, by assigning a utility value for each possible bundle of goods.

Convex Preferences

Preferences that express a consumer's desire for diversified bundles of goods over extreme bundles, depicted graphically as convex indifference curves.