The Snape Oil Supplement Company Uses Sincere and Compelling Testimonials

question 178

Multiple Choice

The Snape Oil Supplement Company uses sincere and compelling testimonials and personal anecdotes to promote its products on TV infomercials. These testimonials:

• A)are acceptable scientific evidence.
• B)should be believed because they appear to be genuine and the products really did help these people as they claim.
• C)lack the basic controls used in research and are not acceptable scientific evidence.
• D)are a type of descriptive research method called naturalistic observation.

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Definitions:

Minimum Average Cost

The lowest point on the average cost curve, signifying the most efficient scale of operation for a firm.

Decreasing Cost

Decreasing cost refers to a situation where costs fall as the scale of production increases, often due to efficiencies or benefits gained from economies of scale.

Differentiated Product

A product that has unique characteristics compared to other products in the market, often highlighted through branding and quality to compete on factors other than price.

Downward Sloping Demand

A fundamental principle in economics that suggests demand for a product decreases as the price increases, illustrated by a demand curve that slopes downwards from left to right.