How Did Apple Overcome Consumers' Diminishing Marginal Utility for IPads

question 154

Multiple Choice

How did Apple overcome consumers' diminishing marginal utility for iPads?

• A) Apple lowered the price of iPads so that previous buyers would purchase another unit.
• B) Apple introduced new features to entice previous buyers to purchase new models.
• C) Apple ignored the problem and focused solely on attracting new buyers.
• D) Apple was unable to overcome the problem and has faced steadily declining sales.

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Definitions:

Clothing

Textile-based materials worn on the body, primarily used for protection, modesty, and decoration.

Food

Nutrient-rich substances consumed by organisms to provide energy and maintain life.

Utility Possibilities Frontier

A graphical representation showing all the possible combinations of two goods that two countries (or agents) can efficiently produce using all of their resources.

Marginal Rates

The amount of change in a variable (often related to costs or taxes) associated with a one-unit change in another variable.