Why Do Consumers Tend to Gravitate Towards Non-Profit Firms When

question 7

Multiple Choice

Why do consumers tend to gravitate towards non-profit firms when evaluating credence goods?

• A)Consumers like giving to charities
• B)Non-profit firms charge lower prices
• C)Consumers can deduct some or all of the purchase price for tax purposes
• D)Non-profit firms offer goods and services not offered by for profit firms
• E)Consumers believe non-profit sllers will be less likely to skimp on quality for profit.

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Definitions:

Mirror-Image Rule

A contract law principle stating that an acceptance must exactly match the terms of the offer for a legally enforceable agreement to exist.

Bilateral Contract

A legal agreement involving two parties where each promises to perform an act in exchange for the other's act.

Principles Of European Contract Law

A set of guidelines aimed at harmonizing contract law across European countries to facilitate cross-border trade and cooperation.

Member States

Countries or regions that are part of a larger federation, union, or association and abide by its regulations and benefit from its provisions.