Carmela Sanchez Is Planning to Buy a Pair of Running

question 40

Multiple Choice

Carmela Sanchez is planning to buy a pair of running shoes. Recently, she has been noticing more Adidas advertising in magazines. This is an example of:

• A) a physiological need.
• B) dissonance.
• C) need satisfaction.
• D) selective exposure.
• E) a consumer expectation.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, typically characterized by a reduction in average costs with increased production.

Minimum Efficient Scale

The smallest scale of production a firm can achieve while still taking full advantage of economies of scale in terms of costs per unit.

Output

The quantity of goods or services produced by a firm, sector, or economy within a certain period.

Overhead Costs

Expenses not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.