Asked by Yolanda Albino on May 04, 2024
Verified
Kara's Kettles,Inc.has developed a new and improved type of cookware.Alex,a typical consumer,will necessarily purchase Kara's new product if his MU/P for the new cookware exceeds that of competing products.
MU/P
The ratio of marginal utility to price, used to measure the additional satisfaction gained per unit of currency spent.
Competing Products
Goods or services that serve as alternatives to each other, satisfying the same need or want, and thus compete in the same market.
- Understand how effective product innovations enhance consumer satisfaction and improve spending effectiveness.
Verified Answer
AM
aunchelle mckinneyMay 09, 2024
Final Answer :
True
Explanation :
MU/P refers to the marginal utility per dollar spent, meaning Alex will purchase Kara's new product if he gets more satisfaction per dollar spent compared to competing products.
Learning Objectives
- Understand how effective product innovations enhance consumer satisfaction and improve spending effectiveness.