John Is Evaluating Four Brands of 3-D Televisions and Has

question 26

Multiple Choice

John is evaluating four brands of 3-D televisions and has decided that picture quality is the most important attribute. All of the alternatives exceed his minimum cutoff for this attribute, so he next compares them on price. One option did not meet his acceptable price cutoff because the price was too high and was eliminated from further review. Next, he looked at the number of HDMI inputs and eliminated another alternative because it did have the minimum number of inputs. He continued in this manner until only one alternative was left and that's the one he decided to purchase. Which decision rule was John using?

• A) conjunctive
• B) compensatory
• C) hierarchical
• D) elimination-by-aspects

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to every individual without diminishing availability to others, such as national defense, public parks, and clean air.

Marginal Social Benefit

The additional benefit that society receives from the consumption of an additional unit of a good or service.

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service, considering both the costs borne by the producer and any costs or benefits to third parties (externalities).

Public Good

A product or assistance made available to all societal members without financial gain, provided by either state bodies or voluntary private groups or individuals.