Answer:
248 UTILS
Explanation:
Total Utility is the total satisfaction from consumption of all units of a good.
Marginal Utility is the additional satisfaction from consuming an additional unit of a good.
TU = ΣMU ; MU = TUn - TUn-1
Law of Diminishing Marginal Utility states : A good's units of consumption increase makes it additional satisfaction i.e MU to rise lesser in the successive unit than in the preceding one. Eg - A thirsty person will get higher satisfaction from the 1st glass of water than the 2nd glass.
If the case gIven follows Law of DMU : (Given- [email protected] unit < [email protected] unit) i.e (56<63) ; Following must would have been the case :
[email protected] unit > [email protected] unit > [email protected] unit - First two MUs would at least be 65, 64 (least possible whole no. integer values > 63).
So , Minimum TU (1..4) = ΣMU = 65 + 64 + 63 + 56 = 248 utils
The price elasticity of demand is 1. You determine price elasticity by dividing the percent change in quantity demanded (there was a 150% change from 30 to 45) by the percent change in price (there was a 150% change from $12 to $8). 150/150=1.
Answer:
A) the marginal buyer's willingness to pay for the 100th unit of the good is $25.
Explanation:
Microeconomics basically works on the margin, it studies marginal costs, marginal revenue, marginal prices, marginal demand, marginal supply, etc. The margin measures the effect of one additional unit: either sold, consumed, produced, etc.
In this case, the marginal price of the 100th unit of the good is $25, that means that a buyer (you can call him a marginal buyer) will be willing and able to pay $25 for that specific unit of the good.
That doesn't mean that the price of the good is constant, both the supply and demand of goods are curves, because the marginal demand constantly changes depending on the marginal price and the marginal utility produced by consuming the extra unit of the good. On the other hand, the marginal changes depending on the marginal costs of producing that good, and the marginal revenue expected to be earned by selling that additional unit.
Answer: The more narrowly we define a market, the more elastic the demand for a product will be.
Explanation: Narrowly defined markets tend to have more elastic demand than broadly defined markets because it is easier to find close substitutes for narrowly defined goods.
For example, a broad category of food, has a fairly inelastic demand because there are no good substitutes for food while Vanilla flavoured ice cream, a very narrow category, has a very elastic demand because other flavors of ice cream (e. g Chocolate) are perfect substitutes for vanilla.
Answer
Reward successful marketing program implementation by giving team members bonuses, recognition awards, promotions, etc.
