An Infomercial Is Aired on Late-Night TV That Claims That

question 18

Multiple Choice

An infomercial is aired on late-night TV that claims that the price of a product has been slashed for a special offer and now includes a bonus sample size of an adjunct to the product. This illustrates the _____ compliance technique.

• A) door-in-the-face
• B) foot-in-the-door
• C) foot-in-the-mouth
• D) that's-not-all

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Definitions:

Implicit Costs

The opportunity costs of using resources that a firm already owns, rather than the expenses directly paid out.

Explicit Costs

Direct, out-of-pocket expenses incurred by a firm or individual for business operations or activities.

Accounting Profits

The financial gain calculated by subtracting total explicit costs from total revenues, using generally accepted accounting principles.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues; also known as supernormal profits.