The Managers of Alpha and Beta Must Make Repeated Advertising

question 1

Multiple Choice

The managers of Alpha and Beta must make repeated advertising decisions simultaneously at the beginning of every month.They choose either low or high levels of advertising expenditure.They both employ a discount rate of 2.5 percent per month. If both firms cooperate,Alpha will choose a _________ level of advertising and Beta will choose a _________ level of advertising.

• A)high; high
• B)high; low
• C)low; high
• D)low; low

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior conditioning.

Negative Reinforcer

A stimulus whose removal or avoidance following a behavior increases the likelihood of that behavior being repeated.

Classical Conditioning

A method of learning that happens when an environmental trigger and an inherently occurring stimulus are linked, causing a reflex to be learned.