According to behavioral economics, advertising works because it Multiple Choice exploits the self-serving bias. provides useful information that improves consumers' ability to make decisions. quickly communicates price changes that exploit the law of demand. exploits the recognition heuristic. 2. In the long run: Multiple Choice all costs are fixed costs. fixed costs are greater than variable costs. all costs are variable costs. variable costs equal fixed costs. 3. Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed. Number of Workers Units of Output 0 0 1 50 2 90 3 125 4 140 5 152 6 160 Diminishing marginal returns become evident with the addition of the Multiple Choice fifth worker. first worker. second worker. sixth worker.

True/False  Utility refers to the total satisfaction or happiness that an individual get from consuming a product.

Walmart recently asked Mondelez, owner of Oreos to bring back a new-and-improved version of its 1990's cereal, Oreo O's. By studying social media comments, Walmart discovered a preference for cereal to address late-night snacking. What should Walmart measure during the initial 90-day relaunch, exclusive to its stores? At what level should it measure, and why?

Marginal utility is defined as the increment to total utility that results from the consumption of one more unit of some good or service. The equation for marginal utility is: Group of answer choices   The change in total utility / the change in quantity   The change in total utility / the change in total revenue   The change in quantity / the change in total utility   Total revenue / quantity demanded

Anon is a graduate student at Lock Haven University studying human behavior. Three subjects, Felicity, Terrance, and Lola, listed their utility for pineapple and watermelon. Anon believes he will be able to tell which subject likes pineapple the most by referring to the levels of utility each one reported. His adviser, Dr. Util, tells him his research is flawed. Explain why Dr. Util feels this way.

Alpha's Price Policy High Low OOOO A Multiple Choice C Beta's Price Policy High $20 $20 $10 $30 Low B $30 $10 $15 Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. If Beta commits to a high-price policy, Alpha will gain the largest profit by $15 adopting a high-price policy. adopting a low-price policy. adopting a low-price policy, but only if Beta formally agrees to do the same. engaging in nonprice competition only.

What is the answer?

Mililani business owner Selina runs a small hair salon and does laundry on a regular basis to clean uniforms, hair cloths, client robes, and other washables. Selina is running low on detergent and saw the same-sized boxes of Arm & Hammer laundry detergent on sale at two different stores. Sale price of detergent Regular price of detergent Store Store 1 Store 2 $9.98, limit 4, with additional boxes at regular price Buy two get one free, limit 1 free box, with additional boxes at regular price If Selina only has time to go to one of these stores and needs 3 boxes, whose advice is correct? Select the cost of 3 boxes of Arm & Hammer Laundry detergent at Select $15.99 Selina's friend Kimo said that Store 2 would be cheaper and noted that Store 1's regular price is cheaper than Store 2's regular price. Selina's other friend Lani said that it would be cheaper to go to Store 1, pointing out that Store 2's sale price is still higher than Store 1. Would the situation change if Selina needs 5…

Chapter 7 i 3:46 The utility of a good or service Multiple Choice is synonymous with usefulness. is the satisfaction or pleasure one gets from consuming it. is easy to quantify. rarely varies from person to person.

Which strategic avenue is most likely to have negative effects on consumers? (Select one.) O Market expansion Rivalry reduction O Value creation Pricing O Efficiency