The More Complicated a Production Process Is

question 170

Multiple Choice

The more complicated a production process is,

• A)the lower the transactions cost of using markets
• B)the lower the cost of production
• C)the more likely the market will be used to organize production
• D)the more likely that transaction costs decrease through centralized control of production
• E)the more likely that transaction costs decrease through use of markets

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, but can sometimes lead to cognitive biases.

Mnemonic Devices

Techniques a person can use to help them improve their ability to remember something, often by associating it with something more familiar or patterning.

Cognitive Shortcuts

Heuristic methods or simple strategies used by the human mind to make decisions or solve problems quickly.

Heuristics

Mental shortcuts or rules of thumb that facilitate fast and efficient decision-making, although not always leading to the perfect solution.