You Started an Online Business Three Weeks Ago

question 40

Multiple Choice

You started an online business three weeks ago.Thus far,you have averaged 10 sales a day,which is one sale for every five hits.You are now considering giving up your day job and becoming a full-time online retailer.You have calculated the amount of income you can earn based on 10 sales a day and know that level of income would support you in a comfortable fashion.The belief that you will have 10 sales per day on average if this becomes your full-time occupation is based on which one of the following?

• A)mental accounting
• B)anchoring and adjustment
• C)law of small numbers
• D)bubble and crash theory
• E)confirmation bias

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Definitions:

Game Theory

A theoretical framework for conceiving social situations among competing players and strategizing for optimal outcomes based on the predicted decisions of others.

Strategic Situations

Scenarios in which individuals or organizations must make decisions that consider the actions and responses of other participants.

Product Differentiation

A marketing strategy where a company makes its product distinguishable from others in the market through design, brand, or quality.

Game Theory

A branch of mathematics and economics that studies strategic interactions where participants' outcomes depend on the choices of all parties involved.