Packaging

question 269

Multiple Choice

Packaging

• A) objectives should focus primarily on promoting the product at the point of purchase.
• B) is important to manufacturers, but not retailers.
• C) decisions should be based on what package will result in the lowest possible cost to the consumer.
• D) almost always increases costs.
• E) None of these alternatives is true.

---

Definitions:

Moral Hazard

A scenario in which an entity is prone to engage in risky behaviors knowing that another party will shoulder the consequences of such risks.

Adverse Selection

Adverse selection also pertains to the tendency of those in dangerous jobs or high-risk lifestyles to acquire life or health insurance to a greater extent than those with lower-risk profiles, thereby distorting the market.

Unobservable Actions

Actions taken by individuals or entities that cannot be seen or measured directly, often relevant in contexts of performance evaluation or trust.

Moral Hazard

The situation where one party to a transaction can take risks without having to suffer consequences, often because another party bears the cost of those risks.