Which of the following are frequently used in economics to develop new products or solve customer problems?

• A. Market research and analysis
• B. Ignoring consumer preferences
• C. Reducing production without feedback
• D. Random guessing

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the context of the question, which is about methods frequently used in economics to develop new products or solve customer problems.
2. Step 2: Recognize that economics often relies on systematic approaches to understand consumer behavior and market needs, rather than ignoring preferences or guessing randomly.
3. Step 3: Identify that 'Market research and analysis' involves gathering data about consumer preferences, market trends, and competitor products, which helps firms make informed decisions.
4. Step 4: Note that ignoring consumer preferences or reducing production without feedback are not effective strategies because they do not incorporate valuable information from the market.
5. Step 5: Conclude that among the options, 'Market research and analysis' is the method frequently used in economics to develop new products or solve customer problems.