A Person's Tendency to Believe He/she Can Predict the Outcome

question 11

True/False

A person's tendency to believe he/she can predict the outcome of random events is known as the self-serving bias.

---

Definitions:

Purely Competitive Firm

A business that operates in a market where there are many buyers and sellers, and it has no control over the market price of its product.

Economic Profit

The difference between a firm’s total revenue and its opportunity costs (including both explicit and implicit).

Long-run Average Total Cost

The total cost per unit of output when all factors of production are variable, and economies of scale have been achieved.

Average Total Cost Curve

A graphical representation showing how the total cost of production per unit of output changes with the level of output.