You Are Employed as a Commission-Based Sales Clerk for a Cosmetics

question 54

Multiple Choice

You are employed as a commission-based sales clerk for a cosmetics retail store. You know that on average; exactly 50 percent of the customers that enter your store will make at least one purchase. Thus far this morning, you have waited on eight customers without making a single sale. You are convinced that the next customer you wait on will buy something. This belief is known as:

• A) Aversion to ambiguity.
• B) The law of small numbers.
• C) Anchoring and adjusting.
• D) Gambler's fallacy.
• E) False consensus.

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Definitions:

Comparative Advantage

The ability of an individual or country to produce a particular good or service at a lower marginal cost than others.

Production Possibilities

Various combinations of goods and services that can be produced within an economy given available resources and technology.

Economies Of Scale

The cost advantage achieved by producing goods in large quantities, hence reducing the cost per unit.

Quality Of Products

Refers to the degree to which a product or service meets or exceeds customer expectations in terms of durability, reliability, and performance.