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Fiona Wants to Sell a Local Advertising Calendar

question 22

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Fiona wants to sell a local advertising calendar. There are 1,000 households in her community, and she estimates that 30 percent will buy a calendar. The printing company will charge a $100 setup fee, and calendars will cost $4.00 each to print. What price will she need to charge to cover all costs and make a $500 profit?

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Definitions:

Social Identity Theory

A theory positing that individuals define themselves in terms of group memberships and these group identifications influence behavior and attitudes.

Normative Influence

In groups, a form of influence that occurs when a member conforms to group norms in order to receive the rewards or avoid the punishments that are contingent on adherence to these norms.

Informational Influence

A social influence process where individuals change their thoughts, beliefs, or behaviors based on information or evidence from others.

Minimal Groups

Experimental paradigms used in social psychology to demonstrate how even arbitrary and seemingly meaningless distinctions between groups can lead to discrimination and prejudice.

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