When Consumers Are Exposed to Additional Choices That Result from the Introduction

question 507

Multiple Choice

When consumers are exposed to additional choices that result from the introduction of a new product,

• A)their satisfaction is likely to be lowered as a result of their having to make additional choices.
• B)a product-variety externality is said to occur.
• C)an advertising externality is said to occur.
• D)consumers are likely to experience negative consumption externalities.

---

Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Times Interest Earned

A financial metric indicating how many times a company can cover its interest payments with its earnings before interest and taxes.

Tax Rate

The proportion, usually expressed as a percentage, at which an individual or corporation is taxed.

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenue.