Economics For Healthcare Managers
4th Edition
ISBN: 9781640550483
Author: Robert H. Lee
Publisher: Health Administration Pr
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Question
Chapter 1, Problem 1E
To determine
The relationship of value and the consumer preferences.
Expert Solution & Answer
Explanation of Solution
The firms or the producers make the investment for innovation, research, and development for the new product according to the market trend and the consumer demands. People
The new product will succeed in the market when people are attracted toward the products. The demand curve equivalent to the supply curve will help the firm to earn the profit in the market. Thus, the market fit analysis is as important as the innovation and the market fit analysis includes the analysis of the utility to the consumers, consumer tastes and preferences, and consumer values that make the relation between the value and consumer preferences stronger like the innovation.
Economics Concept Introduction
Consumer preferences: Consumer preferences are the subjective tastes of individuals that are being measured by the satisfaction (utility) that the consumers receive from each commodity consumed.
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