Beautiful Actresses Appear in Ads Testifying to the Quality of a Brand

question 60

Multiple Choice

Beautiful actresses appear in ads testifying to the quality of a brand of hair coloring products. This is an application of which learning theory?

• A) operant conditioning
• B) psychographics
• C) hierarchy of needs
• D) classical conditioning
• E) observational learning

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Definitions:

Zero Profit

A situation where a firm's total revenue is exactly equal to its total costs, resulting in no net profit.

Maximum Profit

The highest possible financial gain a business can achieve from its operations under given market conditions.

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit.

Efficient Scale

The level of production at which a firm or an industry can produce at the lowest average cost.