Suppose you were able to start new cities on a planet in outer space. Suppose also that these cities will be self-supporting. Further, they will be democratic-with the objective of maximizing consumer welfare-measured by the level of consumer satisfaction. The economic decisions will be made through the "market mechanism." Which of the following statements might be made by some of the settlers?
A) "The price of food is too high."
B) "Intermediaries should be eliminated."
C) "Advertising expenditures are too high."
D) "Marketing costs too much."
E) All of these statements are likely to be made.

Question

Quizplus · Accepted Answer

Since the objective is to maximize consumer welfare, the settlers are likely to make statements about the high prices of food, the need to eliminate intermediaries who may increase costs, the high advertising and marketing costs that may be passed on to the consumers.

Suppose You Were Able to Start New Cities on a Planet