In the context of microeconomics, consumer products are classified based on which of the following attributes?

• A. Durability, tangibility, and frequency of purchase
• B. Production cost and market share
• C. Advertising budget and brand value
• D. Government regulation and tax rate

Answer: (A)

Verified step by step guidance

1. Understand that in microeconomics, consumer products are typically classified based on characteristics that affect consumer behavior and purchasing decisions.
2. Identify the key attributes that influence how consumers perceive and use products, such as whether the product lasts a long time (durability), whether it is a physical good (tangibility), and how often consumers buy it (frequency of purchase).
3. Recognize that other options like production cost, market share, advertising budget, brand value, government regulation, and tax rate are important for business strategy or policy analysis but are not primary classification criteria for consumer products.
4. Recall the standard classification categories: durable goods (long-lasting), nondurable goods (consumed quickly), and services (intangible), which relate directly to durability and tangibility.
5. Conclude that the correct classification attributes are durability, tangibility, and frequency of purchase because these directly affect consumer buying patterns and product categorization.