Multiple Choice
A firm with a sales objective will set prices at a level that generates more:
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
The characteristics of a product that make it superior to competitive substitutes are called:
A
Price elasticity
B
Consumer surplus
C
Value-added features
D
Marginal utility
Verified step by step guidance1
Understand the question is asking for the term that describes the characteristics of a product that make it superior to competitive substitutes.
Recall that 'Price elasticity' measures how quantity demanded changes with price, so it is not about product characteristics.
Recognize that 'Consumer surplus' refers to the difference between what consumers are willing to pay and what they actually pay, not product features.
Know that 'Marginal utility' is the additional satisfaction from consuming one more unit of a good, not the product's superior characteristics.
Identify that 'Value-added features' are the specific attributes or qualities that make a product better or more attractive compared to competitors, which matches the description in the question.
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