If All Consumers Are Uninformed About the Quality of a Product

question 65

Multiple Choice

If all consumers are uninformed about the quality of a product

• A)firms can increase profit by selling the same product under a different name at a different price.
• B)firms will not be able to price discriminate.
• C)firms will price discriminate.
• D)firms will increase profits by charging different prices for the same product.

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Definitions:

Involuntary Expression

Unconscious facial or bodily movements that convey emotions or reactions, not controlled voluntarily.

James-Lange Theory

A theory of emotion proposing that emotions result from the perception of bodily reactions to stimuli, implying that physiological arousal precedes emotional experience.

Autonomic Changes

Adjustments in the autonomic nervous system that regulate bodily functions such as heart rate, digestion, respiratory rate, pupillary response, urination, and sexual arousal.

James-Lange Theory

The James-Lange Theory proposes that emotional experiences result from our interpretations of bodily reactions to stimuli, suggesting that we feel sad because we cry, angry because we strike, or afraid because we tremble.