Mark Is Reluctant to Sell His Car

question 151

Multiple Choice

Mark is reluctant to sell his car.He says that his car is of great significance to him even though most people who owned a similar car have sold it.Mark is not willing to let go of the car because he considers it to be invaluable.Mark's belief about his car is an example of

• A)the endowment effect.
• B)the Flynn fallacy.
• C)functional fixedness.
• D)fixation.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or the volume of services provided.

Special Order

A one-time order that is not normally part of the company's standard operations.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.

Unit Variable Costs

The variable costs incurred to produce a single unit of product.