The Best Explanation for ________ Is a Fixed Factor Causes

question 323

Multiple Choice

The best explanation for ________ is a fixed factor causes diminishing returns to other factors.

• A) increasing returns to scale
• B) a horizontal marginal revenue curve
• C) a perfectly competitive firm earning economic profits in the long run
• D) the shape of a short-run marginal cost schedule

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Definitions:

Rapidly

Occurring in a short time or at a fast pace.

Maximizing

The strategy of seeking the best possible outcome or the highest possible utility when making a decision.

Availability Heuristic

A cognitive bias that causes people to overestimate the probability of events associated with memorable or vivid examples.

Satisficing

A decision-making strategy that entails selecting the first option that meets a minimum set of criteria, rather than optimizing.