Sarah Earns $40,000 Per Year Working for a Large Corporation

question 56

Multiple Choice

Sarah earns $40,000 per year working for a large corporation.She is thinking of quitting this job to work full time in her own business.She will invest her savings of $50,000 (which currently has an annual 10% rate of return) into the business.Her annual opportunity cost of this new business is

• A) $0.
• B) $40,000.
• C) $45,000.
• D) $90,000.

Recognize the influence of correspondent inference and the conditions under which it occurs.

Learn about the role and explanation of naivety in scientific analysis within attribution theory.

Identify the effects of self-perception on attribution.

Describe the factors influencing internal vs. external attributions.

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Definitions:

Simultaneous Game

A strategic interaction (game) between two or more parties (players) in which every player moves (makes a decision) at the same time.

Advertising

A form of marketing communication used to promote or sell a product, service, or idea through various media vehicles.

Brand Loyalty

A consumer's preference to buy a particular brand's product over competitors, often due to a perceived superiority or emotional connection to the brand.

Monopoly Power

The ability of a single company or entity to control a majority share of the market for a particular good or service, often resulting in limited choices for consumers.