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What Determines Preferences of the Customer?
So it means that after our choice there is also two options which we should know very well:
• perfect substitutes - two goods for which the marginal rate of substitution of one for the other is a constant.
• perfect complements - two goods for which the MRS is infinite; the indifference curves are shaped as right angles.
Customers are different, but there is usually simple math how to calculate their needs quantity + price = tactic, and this tactic is that golden key which companies should find, so every consumer could feel well.
- Critically discuss the principle-agent problem, and what implications does it have for the firm in the context of financial crisis?
- What Determines Preferences of the Customer?
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