John Is Selling Magazine Subscriptions and Chocolates

question 50

Multiple Choice

John is selling magazine subscriptions and chocolates.He asks you whether you are interested in buying some chocolates for $1 and you say yes.When you go to get the money to pay for the chocolates and return to the door,John asks you if you would also like to buy a $25 subscription to a variety of magazines.You feel obligated and agree to buy a magazine subscription.This is an example of _____.

• A) social loafing
• B) the door-in-the-face technique
• C) the foot-in-the-door technique
• D) the bystander effect

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Definitions:

MRP

MRP, or Marginal Revenue Product, quantifies the added value generated by employing an additional unit of input in the production process.

Haircut

A reduction applied to the value of an asset for purposes of calculating capital requirements, margining, or risk assessment.

Marginal Revenue Product

The extra income produced by employing an additional unit of a production resource.

Cost Minimization

A strategy that companies employ to reduce their expenses and improve profitability without compromising the quality of their products or services.