Buying a Television Based on Its Brand Name, or Purchasing

question 174

Multiple Choice

Buying a television based on its brand name, or purchasing a product based on a celebrity endorsement are examples of

• A) systematic processing
• B) parallel processing
• C) heuristic processing
• D) central processing

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Definitions:

Contestable Markets

Markets where entry and exit are costless or very low, making the market susceptible to potential competition.

Differentiates Oligopoly

A characteristic of oligopoly markets where few firms dominate and each firm tries to distinguish its product or service from those of competitors.

Contestable

A market characteristic where there are no barriers to entry or exit, allowing potential competition to challenge existing firms, keeping prices competitive.

Market

A market is any structure that allows buyers and sellers to exchange any type of goods, services, and information.