Figure 112 Amit and Bree Are the Only Two Homeowners

question 190

Multiple Choice

Figure 11.2 Amit and Bree are the only two homeowners on an isolated private road. Both agree that installing street lights along the road would be beneficial and want to do so. Figure 11.2 shows their willingness to pay for different quantities of street lights, the market demand for street lights and the marginal cost of installing the street lights.
-Refer to Figure 11.2.How much is Amit willing to pay to have four street lights installed?

• A) $3600
• B) $2700
• C) $1800
• D) $900

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Definitions:

Nonpersonal Selling

A promotional method using advertising, sales promotions, and other mass-market approaches to sell products, as opposed to direct, face-to-face sales.

Direct Marketing

A strategy involving direct communication with individual consumers to obtain an immediate response and cultivate lasting customer relationships.

Differentiate Products

The strategy of making a product stand out from its competitors by emphasizing its unique features or benefits.