According to Research Cited in Your Textbook, Familiarity Has a Powerful

question 59

Multiple Choice

According to research cited in your textbook, familiarity has a powerful effect on us. Which of the following is not an example of this effect?

• A) soft drinks that we have seen in an ad just once
• B) photographs for places we have been to that we find most attractive
• C) photographs of our faces that are mirror images (the way we see ourselves in the mirror)
• D) the name of an insurance company repeated may times in television ads

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Definitions:

Perfectly Competitive

A market structure characterized by many buyers and sellers, identical products, and free entry and exit, leading to price determination by supply and demand.

Market Price

The ongoing value for buying or selling a product or service in the free market.

Shut Down

A short-term decision by a firm to cease production when marginal revenue does not cover variable costs, differing from going out of business, which is a long-term decision.

Total Revenues

The entire sum of money earned from selling goods or services prior to deducting any costs.