In what ways can economists help auto manufacturers estimate the marginal rate of substitution between features such as vehicle interior size and acceleration?
A) Examining production cost data
B) Conducting consumer surveys about willingness to pay for auto features
C) Solving the standard consumer model
D) Statistically analyzing historical data on purchases of different types of autos
E) B and D only

Question

Quizplus · Accepted Answer

Economists can help estimate the marginal rate of substitution by conducting consumer surveys to understand willingness to pay (B) and analyzing historical purchase data to observe consumer preferences (D).

In What Ways Can Economists Help Auto Manufacturers Estimate the Marginal