The Tendency for People Who Have First Agreed to a Small

question 30

Multiple Choice

The tendency for people who have first agreed to a small request to comply later to a larger request is called the _______ phenomenon.

• A)foot-in-the-door
• B)lowball
• C)compliance
• D)conformity

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Definitions:

Long-Run Equilibrium

A situation in economic analysis where all inputs can be adjusted, and firms have no incentive to enter or exit the industry.

Economic Profit

The total revenue minus total costs, including both explicit and implicit costs.

Competitive Market

A market structure characterized by a large number of sellers and buyers, where no single party can dictate prices or market conditions.

Price-Taker Industry

An industry in which individual firms have no control over the price set by the market and must accept the prevailing price.