You Agree to Buy a New Computer at a Terrific

question 25

Multiple Choice

You agree to buy a new computer at a terrific price. Then the sales associate charges you for software you thought was included in the original package. You've been

• A) victimized by the overjustification effect.
• B) low-balled.
• C) victimized by post-decision dissonance.
• D) All of these choices.

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Definitions:

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Accounting Profit

The total revenue of a firm minus the explicit costs directly associated with its operation, such as materials and labor, calculated according to standard accounting practices.

Implicit Cost

The opportunity cost equal to what a firm must give up in order to use resources it already owns for production, without direct payment.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.