Final answer:
Apple may increase marginal utility per dollar by enhancing features, improving functionality, or through marketing that increases perceived value. They must balance this with the law of diminishing marginal utility to maintain high consumer satisfaction relative to the price. Apple's innovative features and services help to justify their product pricing and encourage consumer loyalty.
Step-by-step explanation:
When analyzing how Apple might manipulate the marginal utility per dollar for its products, we look at the consumer satisfaction received relative to the price paid. This metric indicates the additional utility, or satisfaction, a consumer receives from purchasing one more unit of a product divided by its price. Companies like Apple may increase the marginal utility per dollar by adding features, improving functionality, or through marketing strategies that enhance perceived value.
For example, if an iPhone offers significant utility to a consumer due to its features, design, and ecosystem, and is priced at a level that consumers are willing to pay, then the marginal utility per dollar is considered high. However, with each additional iPhone purchased, the law of diminishing marginal utility suggests the additional satisfaction from each new iPhone will eventually decrease. Apple must carefully balance pricing, product updates, and consumer perceptions to maintain high marginal utility per dollar, ensuring customers perceive their products as worth the expenditure.
As such, Apple might introduce innovative features or integrate services that increase utility (like Apple Pay or Siri), thereby justifying the price and maintaining a higher marginal utility per dollar. In doing so, Apple encourages consumers to continue purchasing their products over alternatives, which is a central goal for any business seeking to maximize profits.