When You Meet Your New Roommate for the First Time

question 156

Multiple Choice

When you meet your new roommate for the first time, he is wearing glasses, listening to classical music, and reading a copy of The New York Review of Books. You think, "Well, maybe rooming with an intellectual this year will be good for me." You instantly categorized your roommate as an intellectual on the basis of your __________.

• A) schemas
• B) memories
• C) intuitions
• D) heuristics

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Definitions:

Economic Profits

The excess of a firm's total revenues over its opportunity costs, reflecting profitability beyond the normal return on investment.

Competitive Price-searcher Market

A market in which firms have some control over prices because their products are differentiated, but they still face competition and must search for competitive pricing strategies.

Zero Economic Profit

A situation where a firm's total revenue equals its total costs, including both explicit and implicit costs, indicating no supernormal profit.

Marginal Revenue

The additional income gained from selling one more unit of a good or service.