Assume that a product upgrade strategy adopted by a microwave oven manufacturer increases his marginal cost by $1.50.If the strategy also increases the demand for the product by $3.50 per unit, total economic value will increase.

Question

Quizplus · Accepted Answer

Increasing demand by a greater amount than the increase in marginal cost will result in an increase in total economic value. Therefore, the statement is true.

Assume That a Product Upgrade Strategy Adopted by a Microwave