Operational Efficiency Refers to How Large an Influence Transactions Costs

question 22

True/False

Operational efficiency refers to how large an influence transactions costs and other market frictions have on the operation of a market.

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Definitions:

Attribution

A concept in psychology referring to how people explain the causes of their own and others' behaviors and outcomes, often as internal dispositions or external situations.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

Fundamental Attribution Error

The fundamental attribution error is a bias in social psychology where individuals tend to attribute others' actions to their character or personality, while underestimating situational influences.

Attribution Theory

A theory focused on how people interpret and understand causes behind others' behavior and their own.