Juanita Finds That She Has Been Given Too Much Information

question 25

Multiple Choice

Juanita finds that she has been given too much information about different new cars and their relative merits and drawbacks.She is having a difficult time making a decision about which car to buy because she cannot process all the information she has gathered.This is an example of .

• A)non-automatic processing
• B)information overload
• C)anchoring and adjustment

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Definitions:

Diminishing Returns

Diminishing returns is an economic principle stating that after a certain point, additional units of input result in progressively smaller increases in output.

Average Fixed

The fixed costs of production divided by the quantity of output produced, indicating the average fixed cost per unit.

Marginal

Pertaining to the additional or incremental changes in costs, benefits, revenues, or other quantities, typically used in analysis of business decisions or economic policies.

Total Cost Curve

A graphical representation that shows the total cost of producing different quantities of output.