The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-A consumer becomes loyal to a product when:
A)the good is available at a very low price.
B)the product is as good as its substitutes.
C)the product comes with a gift occasionally.
D)he/she has had a positive experience with that good.
E)discounts are offered periodically.

Question

The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
  MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-A consumer becomes loyal to a product when:
A)the good is available at a very low price. 
B)the product is as good as its substitutes. 
C)the product comes with a gift occasionally. 
D)he/she has had a positive experience with that good. 
E)discounts are offered periodically.

Quizplus · Accepted Answer

A consumer becomes loyal to a product when they have had a positive experience with that good. Price, substitutes, occasional gifts, and discounts may all influence purchasing decisions, but true loyalty is built on a positive experience with the product.

The Figure Given Below Shows the Revenue and Cost Curves