Technological progress has made it possible for firms such as Apple and Alivecor to develop small electronic devices,including smartwatches,smartphones,and products that can be attached to the smartwatches and smartphones,to serve consumers who have become more health conscious and wish to monitor various health conditions.These firms are reacting to which of the three key economic ideas?
A)Firms attempt to maximize revenues.
B)Optimal decisions are made at the margin.
C)People are rational.
D)People respond to economic incentives.

Question

Quizplus · Accepted Answer

The firms are reacting to the economic incentive of increasing demand from consumers who are becoming more health conscious, which is a key aspect of the economic idea that people respond to incentives.

Technological Progress Has Made It Possible for Firms Such as Apple