When Quang Couldn't Find His Wallet,he Began to Wonder About

question 101

Multiple Choice

When Quang couldn't find his wallet,he began to wonder about his roommate's honesty.Although Quang later recalled that he had left his wallet in the glove compartment of his car,he continued to doubt his roommate's honesty.Quang's irrational thinking best illustrates

• A) confirmation bias.
• B) an algorithm.
• C) belief perseverance.
• D) framing.

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Definitions:

Long-Run Equilibrium

A state in which all firms in a perfectly competitive market earn zero economic profits, indicating no incentive for entry or exit.

Monopolistically Competitive

Describes a market structure where many firms offer products that are similar but not perfect substitutes, leading to competition based on product differentiation.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand, achieving a market balance.

Industry Entry

The process by which new competitors join an existing market, often leading to increased competition.