A Salesperson at a Music Store Always Begins by Showing

question 1

Multiple Choice

A salesperson at a music store always begins by showing customers the higher-priced instruments.It's only when they refuse these or ask for cheaper models that he shows them other models.Because the customers turned down the first offer,they will view the salesman's second offer as a concession and may feel inclined to buy the instrument.In this case,the salesman is using the:

• A) cognitive dissonance approach.
• B) inoculation theory.
• C) rejection-then-retreat approach.
• D) social judgment theory.

---

Definitions:

Short Run

A period during which at least one factor of production is fixed, leading to limitations in output adjustment.

Long Run

A period of time in which all factors of production and costs are variable, allowing for full industry adjustment to changes.

Minimum ATC

This refers to the lowest point on the average total cost curve, representing the most efficient scale of operation for a firm.

Short Run

refers to a period in which at least one input in the production process is fixed and cannot be changed.