Answer:
A. Mary produces only cakes while Tim produces only pies
Explanation:
I will start by describing the concept called comparative advantage. Comparative advantage can be described as a businesses ability to produce at a reduced or lower opportunity cost than others. Given this definition, we can see that Mary's opportunity cost of producing cakes is lower than Tims opportunity cost. So Mary has an advantage over Tim in the production of cakes. So the answer to this question is A. Mary should specialize in the making of cakes while Tim should specalize in pie making
Answer:
It means that tangerines are a substitute good to bananas
Explanation:
Substitute goods are goods that provide the same benefit for the consumer, and therefore, are somewhat interchangeable. When the price of one good rises, then, people flock to the substitutes.
In this case, for Pam, tangerines provide the same benefit as bananas (they are both fruits anyway), and because bananas are now more expensive, she decides to purchase more bananas instead.
I believe the answer is B! Let me know if I am right:)
Answer:
Stimulus generalization
Explanation:
Stimulus generalization is a marketing technique used whereby a particular brand in this case Rolex, uses the same or similar packaging design for all or most of their product in the aim of extending goodwill to all their products. It is the tendency to respond to stimuli that are similar to the original stimulus. Companies used this technique because slight differences in product are not apparent to individuals, so individuals tend to carry the goodwill from previous product to another product on the same brand.
