Although Intuition Can at Times Hinder Rationality,it Is Often Adaptive

question 167

Multiple Choice

Although intuition can at times hinder rationality,it is often adaptive because it facilitates

• A) framing.
• B) quick decisions.
• C) belief perseverance.
• D) a mental set.

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Definitions:

Average Revenue

The average amount of money received by a firm per unit of output sold, calculated by dividing the total revenue by the number of units sold.

Marginal Cost

The uptick in price resulting from the manufacture of an extra unit of a good or service.

Monopoly Firm

A company that is the sole provider of a product or service in a market, facing no competition.

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, taxes, and costs.