If a Drug Company Wants to Persuade Skeptical Customers to Buy

question 124

Multiple Choice

If a drug company wants to persuade skeptical customers to buy a new medicine,the company should consider all of the following strategies EXCEPT

• A) hiring a spokesperson who is both attractive and an actual doctor.
• B) delivering a one-sided argument that the medicine is superior.
• C) repeating the commercial again and again to induce mere exposure effect.
• D) sending strong arguments that appeal to emotions.

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Definitions:

Implicit Cost

The opportunity cost equal to what a firm must give up in order to use resources it already owns, without paying rent or purchasing them.

Economic Profits

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs.

Accountants

Professionals responsible for managing and auditing financial records, ensuring accuracy and compliance with legal requirements.

Short Run

Describes a period in which some factors of production or inputs are fixed, limiting the ability of a business to fully adjust to market changes.