Susan Always Takes the Same Route to Work and Drives

question 542

Multiple Choice

Susan always takes the same route to work and drives by a particularly unusual apartment building each day on her way to and from work. Initially, she doesn't think much of the structure and actually has a mild dislike for it, but after several months of her commute, she has noticed that she is actually starting to like the apartment building and is considering trying to rent an apartment there. This change in Susan's feelings about the building best demonstrates

• A)the social comparison effect
• B)the affiliation exchange effect
• C)the mere exposure effect
• D)the penetration effect

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed costs in a company's cost structure.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no profit or loss.

R-Squared

A statistical measure representing the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Mixed Cost

A cost that contains both variable and fixed cost elements.