The Upscale Ethan Grant Company Has Created a New Cologne

question 26

Multiple Choice

The upscale Ethan Grant Company has created a new cologne called Ethan for men and a complementary perfume called Ethan Femme.The company's advertising executives know that their new fragrances will be competing with hundreds of others and that the human nose can discriminate only among so many smells.They know there's no way they can logically convince someone to pay an exorbitant price for Ethan and Ethan Femme;instead,they will need to rely on

• A) the central route to persuasion.
• B) the peripheral route to persuasion.
• C) the foot-in-the-door technique.
• D) deindividuation.

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Definitions:

Short Run

A period in economics where at least one input is fixed and cannot be changed, limiting the ability to increase production.

Long Run

A period of time in economics wherein all inputs and factors of production can be varied, with no fixed factors.

Variable Inputs

Resources or factors of production that can be adjusted in the short run to meet changes in demand.

Diminishing Returns

An economic concept indicating that as more investment is made in a particular area, the rate of profit from that investment, after a certain point, starts to decline.