Many Environmentally Friendly Products Have Been Costly to Produce,and Consumers

question 5

Multiple Choice

Many environmentally friendly products have been costly to produce,and consumers have not been willing to pay a premium for them.As a result,companies often question if they can be both _____ and competitive.

• A)technologically advanced
• B)fiscally responsible
• C)socially responsible
• D)compliant with demand

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Definitions:

MU (Marginal Utility)

The augmented utility or pleasure achieved by consuming an extra unit of a good or service.

Marginal Cost

The outlay required to produce another unit of a product or service.

Marginal Benefit

The additional benefit to a consumer from consuming one more unit of a good or service.

R&D Expenditures

Costs associated with research and development activities undertaken by a company to innovate or improve products or processes.