Consumers Are Often Bewildered by the Different Array of Choices

question 18

Essay

Consumers are often bewildered by the different array of choices, plans and prices that are offered by cell phone service companies. Explain in terms of consumer surplus why this makes sense from both the company's perspective and that of the consumer.

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Definitions:

Neutral

Not favoring any side in a dispute, contest, or situation; unbiased or impartial.

Unconditioned Stimulus

A stimulus that naturally triggers a response without any need for prior learning.

Stimulus Discrimination

The ability to differentiate between a conditioned stimulus and other stimuli that have not been paired with an unconditioned stimulus.

Organism

A living entity capable of growth, reproduction, and often response to external stimuli, ranging from single-celled forms like bacteria to complex multicellular entities like humans and plants.