Benson and Colleagues (1976)did an Experiment in Which an Application

question 133

Multiple Choice

Benson and colleagues (1976) did an experiment in which an application packet was left at an airport phone booth with either an attractive or unattractive picture of the applicant.The packet had been ostensibly lost and had a stamped,addressed envelope with it.They found that

• A)people were more likely to send in the packets of the attractive than the unattractive applicants.
• B)people were more likely to send in the packets of the unattractive than the attractive applicants.
• C)people were more likely to help the attractive applicant only if they were known to the applicant and had the chance of developing a relationship with them.
• D)people were more likely to help the unattractive applicant only if they were known to the applicant and had the chance of developing a relationship with them.

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Definitions:

Output Effect

The change in total revenue resulting from a change in quantity sold, holding price constant.

Price Effect

The price effect describes how changes in price influence the quantity demanded or supplied in the market.

Oligopolist

A market participant in an oligopoly, a market dominated by a small number of firms.

Production Decision

The determination made by a firm regarding the quantity of goods or services to be produced, based on factors like cost of production, market demand, and competition.