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Suppose that a firm successfully introduces a highly profitable new product. If this new product offers less marginal utility per unit to consumers than existing substitute products, then the:____.
a. new product has greater marginal utility than the existing products.
b. laws of economics have been violated.
c. new product must have increasing, not diminishing, marginal utility.
d. existing products were un-profitable to produce.

Respuesta :

Answer:

Option A is correct.

Explanation:

Option A is correct because it is given in given that a new product is a highly profitable product. Moreover, when a new product comes into the market then its prices are higher than the existing products. Therefore, the marginal utility of the new product will also be high.  Secondly, the marginal utility from a certain product keeps decreasing as the consumption of that commodity increases.

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