How a Person Establishes Expectations for a Service They Have

question 13

Multiple Choice

How a person establishes expectations for a service they have never purchased but plan to purchase is influenced by each of the following EXCEPT:

• A)word-of-mouth communications.
• B)previous experience.
• C)promotional activities.
• D)personal needs.

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Definitions:

Marginal Social Benefit

The additional benefit to society from one more unit of a good or service being produced and consumed.

Marginal Social Cost

The additional cost incurred by society as a whole from producing one more unit of a good or service, including both private costs and any externalities.

Pollution

The introduction of harmful substances or products into the environment, causing adverse effects.

External Benefit

A positive effect experienced by a third party due to an economic transaction they were not directly involved in.