Answer:
INCREASE in Consumption of product Y
DECREASE in Consumption of product X
Explanation:
Based on the information given we were told that the already existing product (X) has a marginal utility of 10 utils as well as the price of the amounts of $5 while the new product (Y) has a marginal utility of 8 utils as well as the price of the amounts of $1 which means that PRODUCT Y marginal utility and price is lower than that of PRODUCT X marginal utility and price.
Therefore equal marginal principle suggests that Oscar should INCREASE his consumption of product Y and DECREASE his consumption of product X reason been that product Y has a lower marginal utility of 8 utils and the price of the amounts of $1 which means that his consumption of Product Y has to be INCREASED while product X on the other has a higher marginal utility 10 utils as well as the price of the amounts of $5 which means that his Consumption of Product X has to DECREASED.
Answer:
Since the opening price is set so low, potential buyers will think that their total consumer surplus is very large. For example a consumer may be willing to pay $40 for an iPod but since the price is $1 his total consumer surplus is $39, so he will tempted to offer higher bids which eventually lead to a higher final price.
Strategic business units that compete in a low-growth market but hold considerable market share are called <u>Cash Cows</u> because their earnings and cash flows are high and stable.
<h3>What is the Cash Cow?</h3>
The cash cow is a quadrant in the BCG matrix that shows that a unit has a consistently profitable business and possesses the following characteristics:
- Competes in a low-growth market.
- Holds considerable market share.
- High and stable cash flows and earnings.
Thus, the strategic business unit with the above characteristics is a <u>cash cow</u>.
Learn more about the BCG matrix at brainly.com/question/26633615
Addressing marketing failure is a way of having to know the causes of this failure and to be able to determine the better ways of solving it and to prevent it from happening it again, by this, in the future, they will be able to produce a more sustainable and stronger one.
Nark is a SECONDARY consumer when he eats a hamburger. A secondary consumer is basically an organism that feeds on primary consumers. (The cow in this case) :)
