Question
Most businesses seek to maximize __ , while consumers seek to maximize __ marketing exposure;personal #Eliability brand recognition;discounts and sales utility per dollar spent;profit per dollar cost profit per dollar cost;utility per dollar spent
Answer
4.2
(355 Votes)
Tristan
Master · Tutor for 5 years
Answer
The accurate answer is "profit per dollar cost; utility per dollar spent." This choice directly addresses the core motivations of businesses and consumers within the framework of economic theory, with businesses aiming to maximize their profit relative to their costs and consumers seeking to maximize the satisfaction or utility they receive for each dollar they spend.
Explanation
This question revolves around the basic economic motivations of businesses and consumers. Businesses aim to maximize their outcomes from financial investments, often seeking the highest profit margin possible, which is the difference between the cost to produce and the price at which they sell their products or services. This concept is captured by the phrase "profit per dollar cost," meaning businesses strive to earn as much profit as possible for every dollar they spend.On the other hand, consumers are motivated by obtaining the greatest value or satisfaction from the products or services they purchase, which is known in economics as "utility." The phrase "utility per dollar spent" reflects the consumer's desire to maximize the satisfaction or utility they receive for each dollar they expend. The other options listed (marketing exposure, personal liability, brand recognition, discounts and sales) are relevant to business and consumer behaviors but do not directly address the fundamental economic motivations of maximizing profit and utility, respectively.