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ruslelena [56]
3 years ago
13

Both UTech Inc. and Mirco Corp. incur a cost of $200 to manufacture a single unit of a cell phone. However, UTech Inc. charges a

higher price than Mirco Corp. does, but it still sells a higher number of phones. What does this imply
Business
1 answer:
erica [24]3 years ago
7 0

Answer: UTech Inc. creates more economic value than Micro Corp. does.

Explanation:

Economic value refers to the measure of the benefit that an economic agent such as an individual, firm or government gets when a good or service is consumed.

In this case, since consumers derive more economic value from the good, even though it's costlier, they'll be willing to pay a higher price.

Therefore, UTech Inc. creates more economic value than Micro Corp. does.

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