Research Has Shown That, in Predicting the Behavior of Other

question 34

Multiple Choice

Research has shown that, in predicting the behavior of other people, we are

• A)more accurate in predicting their observable behavior than our own observable behavior.
• B)more accurate in predicting an acquaintance's behavior than a close friend's behavior.
• C)less accurate in predicting their observable behavior than our own observable behavior.
• D)equally able to predict a close friend's and an acquaintance's observable behavior.

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Definitions:

Marginal Cost

The financial increase associated with the generation of one more unit of a product or service.

Average Variable Cost

The variable cost per unit of output, calculated by dividing the total variable costs by the quantity of output produced.

Market Price

The prevailing cost at which a service or product can be acquired or disposed of in a marketplace.