In Exchange for a Share in the Revenues Earned on Campus,State

question 52

Multiple Choice

In exchange for a share in the revenues earned on campus,State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus.Prior to the deal,three soft drink companies sold beverages on campus;now no other soft drink company is allowed to sell its products on campus or at university events.
Refer to the information above.Prior to the deal,a 12-ounce can of CheapFizz sold for 75 cents.After the deal you would expect a 12-ounce can of CheapFizz to sell for:

• A)75 cents because that is the market price.
• B)less than 75 cents because CheapFizz will have greater volume and so can sell for a lower price.
• C)more than 75 cents because demand for CheapFizz will shift to the left.
• D)more than 75 cents because other firms must exit the market.

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Definitions:

Informational Influence

A form of social influence that occurs when individuals change their beliefs or behavior based on the information received from others.

Private Acceptance

Involves internalizing and genuinely agreeing with a group's beliefs or behaviors, even when no one else is observing.

Descriptive Norms

The perception of what behaviors are common or typical within a group, influencing individuals' behavior based on what they perceive others are doing.

Injunctive Norms

Socially accepted beliefs about what behaviors are deemed appropriate or inappropriate in specific contexts.