A Consumer's Marginal Willingness to Pay

question 12

Multiple Choice

A consumer's marginal willingness to pay

• A)changes with price.
• B)is equal to the marginal value to the consumer of the last unit of output.
• C)is the minimum price a consumer will pay for the last unit of output.
• D)is the first derivative of the demand curve.

Identify various roles in social influence such as mavens, connectors, and salesmen.

Recognize the weight of negative vs. positive comments in consumer decision-making.

Comprehend key theories such as the two-step flow model of influence.

Define and apply concepts such as impressions in advertising.

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Definitions:

Preattention

A cognitive process allowing the brain to focus on relevant stimuli while ignoring irrelevant information.

Base-Rate Information

Fundamental statistics or probabilities that are used for reference or as a baseline in decision-making processes.

Representativeness Heuristic

A mental shortcut that involves making judgments based on how much one thing resembles another, which can lead to biases in decision making.

Base-Rate Information

Statistical data that provides foundational probabilities of certain events or characteristics within a specific population.