Chapter 07 Consumer Behavior Multiple Choice Questions 1. Utility: A. is synonymous with usefulness. B. is want-satisfying power. C. is easy to quantify. D. rarely varies from person to person. 2. Marginal utility can be: A. positive‚ but not negative. B. positive or negative‚ but not zero. C. positive‚ negative‚ or zero. D. decreasing‚ but not negative. 4. The ability of a good or service to satisfy wants is called: A. utility maximization. B. opportunity cost
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does the slope of the budget line equal? d) What is an indifference curve? e) Why do consumers prefer higher indifference curves (farther to the right) to lower indifference curves? f) In an indifference curve/budget line framework‚ how does a consumer decide which of all possible combinations of goods to purchase? g) Describe the consumer equilibrium in the indifference curve/budget line model. h) In a budget line/indifference curve figure‚ how do you identify the best affordable combination of any
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1.1 Compare Different Learning Styles Mumford Learning Style By Peter Honey and Alan Mumford suggests that we might usefully consider 4 basic "learning styles": Activist - Pragmatist - Theorist - Reflector. Activists involve themselves fully and without bias in new experiences. They enjoy the "here and now" and are happy to be dominated by immediate experiences. They are open-minded‚ not sceptical‚ and this tends to make them enthusiastic about anything new. Pragmatists are keen on trying
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performance and metrics within the pizza business. This paper will also discuss alternative ways to run processes and apply the learning curve concepts to test the alternative against the existing process. This paper will also discuss how good the initial process data is compared to the new alternative. The objectives of this assignment are to apply learning curve theory to increase individual and organizational performance and to evaluate a process by applying control techniques. The current average
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ECON 1. (Demand Under Perfect Competition) what type of demand curve does a perfectly competitive firm face? Why? A horizontal or a perfectly elastic‚ demand curve. A perfectly competitive firm is called a price taker because that firm must “take‚” or accept‚ the market price- as in “take it or leave it.” 2. Explain the different options a firm has to minimize losses in the short run. A firm in perfect competition has no control over the market place. Sometimes that price may be so low
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| 5 | _____ | 0 | 6 | 45 | _____ | 7 | 35 | _____ | 8 | _____ | –15 | (a) Graph both the total utility and marginal utility curves together on the same graph. (b) Explain the shape of both of the curves. (c) Identify the point where utility is maximized on both curves. Discuss the reasoning behind each value. Q3 Show an indifference curve by using the data in the table below and indicating X on horizontal axis and Y on vertical axis. (3m) Combinations | Units of X
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they maintained without any compromise in taste. This resulted in a shift of the utility curve towards the right‚ whereby consumers got a higher level of satisfaction‚ by consuming products from a bigger brand which believed in far better hygienic procedures (Ref graph). With this in mind‚ they evolved a competitive pricing strategy to survive and grow in the market dominated by smaller players. INDIFFERENCE CURVE ANALYSIS Haldiram’s has a huge product portfolio and sought to customize its products
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in reality utility or satisfaction cannot be measured cardinally‚ the satisfaction obtained from one combination of productions can only be compared to the satisfaction obtained by consuming another combination of products. * The indifference curve approach‚ was then introduced which is based on preference hypothesis ‚ that is if the consumer is provided with various combination of goods‚ he can put them or
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effect on the demand curve Markets in Action Advertising and its effect on the demand curve Advertisement has always been an important market strategy for firms to accomplish their goals. From cereal companies to airline companies‚ it is inevitable to go through the process of advertising. However‚ what purpose does advertising serve for consumers and suppliers in the market? In this report‚ it is to examine the relationship between advertising and the market demand curve. Moreover‚ the impact
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Explain how production possibility curves can be used to demonstrate the problem of unemployment‚ effects of technological change and the benefits of economic growth. Human wants are unlimited and resources are scarce. In order to satisfy these wants‚ all societies face the problem of allocating these scarce resources to producing the wanted products. These decisions greatly affect the economy and will contribute to the movements of growth. A graph that visually represents the results of the decisions
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