A Clothing Store and a Jeweler Are Located Side by Side

question 23

Multiple Choice

A clothing store and a jeweler are located side by side in a shopping mall. If the clothing store spends C dollars on advertising and the jeweler spends J dollars on advertising, then the profits of the clothing store will be (6 + J) C - C² and the profits of the jeweler will be (6 + C) J - 2J². The clothing store gets to choose its amount of advertising first, knowing that the jeweler will find out how much the clothing store advertised before deciding how much to spend. The amount spent by the clothing store will be

• A) 5.
• B) 10.
• C) 15.
• D) 2.50.
• E) 7.50.

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Definitions:

Bandura's Fortuitous Events

Refer to events that occur by chance and can have significant impacts on an individual’s life, according to Albert Bandura’s social cognitive theory.

Behavior

The manner in which an individual or entity acts or conducts themselves, especially towards others.

Skinner's Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning, advocated by B.F. Skinner, emphasizing the effects of reinforcement on behavior.

Reinforcers

Stimuli which, when presented after a behavior, increase the likelihood of that behavior being repeated.