Regarding the Effects of Choice on Decision-Making, Which of the Following

question 4

Multiple Choice

Regarding the effects of choice on decision-making, which of the following statements is FALSE?

• A) Businesses that increase the variety of their product offerings are guaranteed increased sales.
• B) Restaurants whose menus feature a broader variety of choices often find that patrons are more likely to order from a smaller number of familiar choices.
• C) In one study, consumers with more flavors of jams to choose from did express more interest, but were actually 10 times less likely to purchase any jam.
• D) Complex choices are difficult to make due to increased stress, cognitive overload, difficulty remembering all of the choices, and confusion about the possibilities.

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Definitions:

Activity

The engagement in tasks or actions aimed at achieving a certain objective or result.

Economic Perspective

A viewpoint that emphasizes analyzing problems and making decisions based on economic principles and models.

Marginal Benefits

The boost in pleasure or benefit experienced from the consumption or creation of one extra unit of a good or service.

Marginal Costs

The boost in total charges incurred by producing one more unit of a product or service.