________ Refers to the Phenomenon in Which the Presence of Other

question 13

Multiple Choice

________ refers to the phenomenon in which the presence of other people makes it less likely that any individual will help someone in distress because the obligation to intervene is shared among all the onlookers.

• A) Diffusion of responsibility
• B) The reciprocity norm
• C) Social exchange theory
• D) Altruism

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Definitions:

Inelastic Portion

A segment of the demand curve where consumers are relatively unresponsive to price changes, indicating a demand elasticity of less than one.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.

MR = MC

An economic principle stating that profit maximization occurs when marginal revenue equals marginal cost.

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain those activities.