Which of the Following Statements Best Represents the Attitude of a Consumer

question 99

Multiple Choice

Which of the following statements best represents the attitude of a consumer with a very inelastic demand toward various brands of coffee?

• A)"All the brands are exactly the same.I always buy the cheapest."
• B)"Coffee is coffee; one brand is as good as the rest."
• C)"My brand is so superior to the rest of the brands that I'm willing to pay a bit more for it."
• D)"With my limited budget my favorite brand is usually the 'what's on sale' brand."

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Definitions:

Diminishing Returns

The principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good changes as the production volume varies.

Total Product

The overall quantity of output that a firm produces, typically measured within a specific time period under given levels of input.

Marginal Cost

The additional cost incurred in the production of one more unit of a good or service.