Let's Say a Company That Makes a Consumer Product Such

question 43

Multiple Choice

Let's say a company that makes a consumer product such as laundry detergent asks customers to write a testimonial about the product in exchange for a small chance of winning a prize.What does cognitive dissonance theory predict will happen to consumers who participate and write the testimonial?

• A) They will feel positive emotions.
• B) They will value social norms over personal norms.
• C) They will alter their attitudes.
• D) They will engage in uncooperative behavior.

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Definitions:

Full Capacity

The maximum level of output that a company can sustain over a long period without increasing its fixed costs.

Capital Intensity Ratio

A financial metric that measures the amount of capital needed per unit of output or the capital required to generate a dollar of revenue.

Operating Capacity

The maximum output that a company can produce under normal conditions.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholder's equity.