Erica Drives by a Compelling Billboard While Driving on the 401

question 111

Multiple Choice

Erica drives by a compelling billboard while driving on the 401 Highway in Ontario. As she goes by, she finds that the print is too small to read. This demonstrates the principle of:

• A) sensory adaptation
• B) visual orientation
• C) differentiated advertising
• D) absolute threshold
• E) psychophysics

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Definitions:

Price Searcher

A seller that determines the selling price of its product or service based on market conditions, demand, and competition, instead of adhering to a market dictated price.

Marginal Revenue

The additional revenue that a company receives from selling one more unit of a good or service.

Marginal Cost

The extra expense involved in making one more unit of a product or service.

Expand Output

The process of increasing the quantity of goods or services produced by a business or economy.