In January 2011,Coca-Cola and Pepsi Agreed to Reduce Their Yearly

question 99

Multiple Choice

In January 2011,Coca-Cola and Pepsi agreed to reduce their yearly advertising budgets by $1 million each,and neither firm reneged on the agreement throughout the year.In January 2012,Coca-Cola and Pepsi each announced that its company 2011 profits had increased by $1 million.Which of the following is a likely explanation for this increase?

• A) A new entrant in the market caused Coca-Cola and Pepsi to lose substantial market share.
• B) The government imposed a punitive tax on both firms for producing a beverage that is a danger to public health.
• C) The firms had previously been in a prisoner's dilemma situation where one firm's advertisements were effectively canceling the other firm's advertisements.
• D) Coca-Cola drastically reduced the price of its soda relative to the price of Pepsi's soda.
• E) Pepsi drastically reduced the price of its soda relative to the price of Coca-Cola's soda.

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Definitions:

Unrealistically Positive Views

An excessively optimistic outlook or perception of oneself or situations, often ignoring realistic or negative aspects.

Self-Report Measures

Tools or questionnaires used to collect data from individuals about their thoughts, feelings, attitudes, or behaviors by asking them to report on these elements themselves.

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A person’s usual pattern of behavior, feelings, and thoughts across time or across situations.

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The perceived unique collective personality, customs, and traits of the citizens of a nation.