Consider the statement: "The success of a new product depends not only on its marginal utility but also on its price." A new product with a high level of marginal utility per unit O will definitely be successful, since it has a high level of marginal utility per unit consumed. may not be successful, since consumer choice depends on MU/price. O will definitely be successful, since consumer choice depends on MU/price. may not be successful, since consumer choice depends on price/MU.

Consider the statement: "The success of a new product depends not only on its marginal utility but also on its price." A new product with a high level of marginal utility per unit O will definitely be successful, since it has a high level of marginal utility per unit consumed. may not be successful, since consumer choice depends on MU/price. O will definitely be successful, since consumer choice depends on MU/price. may not be successful, since consumer choice depends on price/MU.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.5P

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