What Term Is Used for a Belief About the Characteristics

question 55

Multiple Choice

What term is used for a belief about the characteristics of members of a group that are then applied generally to most members of the group?

• A) groupthink
• B) prejudice
• C) stereotype
• D) illusionary correlation

---

Definitions:

Marginal Revenue

The revenue enhancement a company experiences by selling another unit of a product or service.

Total Revenue

The total amount of money received by a firm from sales of its products or services, calculated as the quantity sold times the price per unit.

MC < MR

A condition in economic theory where marginal cost is less than marginal revenue, suggesting that increasing production would be profitable.

Profit Maximized

The point at which a firm achieves the highest possible profit margin, where marginal revenue equals marginal cost.