A Decision Whether to Continue to Buy a Product Instead

question 85

True/False

A decision whether to continue to buy a product instead of producing it externally depends specifically on the incremental costs and incremental revenues of making the change.

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Definitions:

Cocktail Party Effect

This describes the human ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as when listening to a single conversation in a crowded room.

Change Blindness

A perceptual phenomenon where a change in a visual stimulus goes unnoticed by the observer.

Sequential Processing

A method of processing information in a linear, ordered manner, where one step follows another in a sequence.

Parallel Processing

Parallel processing is the ability of the brain to simultaneously process incoming stimuli of differing quality. It's a part of the human information processing system that allows for complex multitasking.