Author Question: Zoe is an executive at Dell Computer Company who is in charge of designing the next version of ... (Read 34 times)

Mollykgkg · **on:** Jul 1, 2018

Zoe is an executive at Dell Computer Company who is in charge of designing the next version of laptop computers. She will consider such features as screen size, weight, processor speed, and CD and DVD drives.

Given the fact that it is costly to include more features in new products, why might Zoe be interested in data on how much consumers paid for a range of laptops with different attributes? A) in order to estimate willingness to pay for each feature.
B) in order to set an optimal price for the laptops.
C) in order to determine the best features to include.
D) in order to estimate willingness to trade off one feature for another.
E) all of the above

Question 2

The slope of an indifference curve reveals:

A) that preferences are complete.
B) the marginal rate of substitution of one good for another good.
C) the ratio of market prices.
D) that preferences are transitive.
E) none of the above