The Difference Between Substitute and Complementary Products May Be Summarized

question 11

Multiple Choice

The difference between substitute and complementary products may be summarized as follows:

• A)Substitutes reduce the value of a product,whereas complements increase value
• B)Complements reduce the value of a product,whereas substitutes increase value
• C)Substitutes cannot be used together,whereas complements must be used in combination
• D)Complementary relationships increase the profitability of all firms engaged in supplying them;substitute relationships reduce the profitability of all firms supplying them.

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Definitions:

Actor-Observer Effect

A cognitive bias in which people attribute their own actions to external factors while attributing others’ actions to their personal traits or dispositions.

Individuation

The development of an individual's sense of self and distinct identity through psychological, emotional, and spiritual growth.

Discrimination

Unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.

Attitude-Discrepant Behavior

Behavior inconsistent with an attitude that may have the effect of modifying an attitude.