Consumer acceptance of a new product depends on
A) price alone.
B) marginal utility alone.
C) price and marginal utility.
D) total utility divided by marginal utility.

Question

Quizplus · Accepted Answer

Consumer acceptance of a new product depends on both price and marginal utility. Price is a crucial factor as consumers are usually hesitant to pay a high price for a product that they may not be familiar with. Marginal utility refers to the additional satisfaction or usefulness that consumers gain from each additional unit of the product they consume. A higher marginal utility means that consumers will be willing to pay more for the product, thus increasing its acceptance. Therefore, both price and marginal utility are important factors in determining consumer acceptance of a new product.

Consumer Acceptance of a New Product Depends on