If Companies Increase Market Share in a Given Product Line

question 31

True/False

If companies increase market share in a given product line because their reported costs are less than their actual costs, they will become more profitable in the long run.

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Definitions:

Cognitive Dissonance

The mental discomfort or stress experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Justification of Effort

A concept in social psychology suggesting that individuals assign greater value to outcomes they have put effort into achieving.

Mere Exposure Effect

A psychological phenomenon in which people tend to develop a preference for things merely because they are familiar with them.

Cognitive Dissonance

The psychological unrest felt by an individual who simultaneously maintains two or more conflicting beliefs, ideas, or values.