An Executive Was Trying to Think of Ways to Increase

question 18

Multiple Choice

An executive was trying to think of ways to increase sales of ballpoint pens among young people.While walking down a street with lots of neon signs,the executive got the idea that young people would want to buy pens with ink in bright neon colours and with pen containers that glow in the dark.This situation is an example of:

• A)divergent thinking.
• B)escalation of commitment.
• C)devil's advocacy.
• D)bounded rationality.
• E)programmed decision making.

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, identical products sold by all firms, perfect information, and no barriers to entry or exit.

Marginal Revenue

The increased earnings realized from the sale of one extra good or service.

Average Revenue

The total revenue earned by a firm from selling its goods or services, divided by the quantity of goods or services sold, indicating the average income per product unit.

Average Total Cost Curve

A graphical representation that shows the cost per unit of output, combining both fixed and variable costs, as the quantity of output varies.