Leena's and Ruth's Mother Takes Them Shopping for Prom Dresses

question 53

Multiple Choice

Leena's and Ruth's mother takes them shopping for prom dresses.The sales clerk at the dress shop sees each daughter separately but recommends the same prom dress for both.The sales clerk tells Leena the dress will cost 75% of the regular price.She tells Ruth the dress will cost 25% less than the regular price.Ruth leaves the dress shop feeling that the same dress is a better deal than Leena.This is an example of ____.

• A)the affect heuristic
• B)a framing effect
• C)utility theory
• D)cost-benefit analysis

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Definitions:

Capacity

Capacity refers to the maximum level of output that a company can sustain to produce a product or service, considering available resources.

Inventory

The goods and materials that a business holds for the ultimate goal of resale, production, or utilization.

Network Design Decisions

Strategic choices regarding the configuration and management of a supply chain network, including the location of facilities and the flow of goods.

Capacity Allocation

The process of distributing available resources or production capabilities among various tasks, projects, or departments to optimize efficiency.