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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1024 |
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The benefit, or marginal utility, experienced from each purchase would be grouped together as the total utility gained from purchasing the cars.
Elasticity
Having established the utility and, if appropriate, marginal utility involved in the sale of the product, the setting or changing of the price charged for the product needs to be reviewed...
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Changing the price structure for the product is likely to have an impact on the amount of product that would be sold once the change is implemented. This change is called elasticity, and is determined by dividing the percent change in the quantity sold by the percent change in price. A January 2001 article in the Business Communications Review on the telecommunications industry discusses both utility and elasticity for that industry...
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General points of the essay
Marginal utility theory, product differentiation, and revenue/profit maximization
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