Which of the Following Best Illustrates a "Breakthrough Opportunity

question 106

Multiple Choice

Which of the following best illustrates a "breakthrough opportunity?"

• A) A recording company's new CD gets unexpected national publicity on MTV and almost every teenager wants a copy for Christmas.
• B) A drug company develops a patented pill that people can take once a year and safely avoid catching a cold.
• C) A bank puts its credit card machines in convenient drive-up locations--so they will be more convenient for customers.
• D) A nurse realizes that the growing number of older people will increase the demand for nursing home services, so she quits her job and opens a quality nursing center for the elderly.
• E) A wireless phone company introduces a new service that offers more free weekend minutes than any other service in its market area.

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Definitions:

Utility Function

A mathematical representation of how different bundles of goods or services are ranked according to their utility or satisfaction to a consumer.

Paasche Price Index

A measure of price level changes over time that uses the current period's quantities as weights.

Doggerel

A comic verse of irregular measure, often characterized by crudeness, triviality, or poor quality.

Utility Function

A mathematical model in economics that represents a consumer's preference ordering over a set of goods or services.