The Mental Shortcuts That People Use to Make Judgments Quickly

question 60

Multiple Choice

The mental shortcuts that people use to make judgments quickly and efficiently are called __________.

• A) judgmental heuristics
• B) self-fulfilling prophecies
• C) schemas
• D) controlled processes

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Definitions:

Monopolistically Competitive

A market structure where many firms sell products that are similar but slightly differentiated, allowing them some control over pricing.

Maximizing Profits

The process of adjusting production and sales strategies to generate the highest possible profit from business activities.

Economic Profit

The gap measured between comprehensive earnings and widespread costs, including both evident and implicit fees.

Fixed Costs

Costs that do not change with the level of output produced by a firm, such as rent, salaries, and insurance.