While Driving His Girlfriend to Work,Nate Narrowly Avoided a Collision

question 129

Multiple Choice

While driving his girlfriend to work,Nate narrowly avoided a collision with another vehicle.Moments later,he experienced an unusually warm glow of affection for his girlfriend.His romantic reaction is best explained in terms of

• A) social exchange theory.
• B) the two-factor theory of emotion.
• C) equity theory.
• D) the mere exposure effect.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not perfect substitutes, allowing for some degree of market power.

Pure Competition

A market structure characterized by a large number of sellers and buyers, homogeneous products, and the ease of entering and exiting the market.

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Monopolistically Competitive

A market structure characterized by many sellers offering differentiated products, allowing for some degree of market power.