Imagine a Beach with Beachgoers Evenly Distributed Throughout

question 90

Multiple Choice

Imagine a beach with beachgoers evenly distributed throughout. It's a hot day and there are two ice cream vendors who start out far away from each other. They quickly discover that if they move closer to the center, they keep customers on their far side of the beach while poaching customers near their rival. Eventually, both vendors end up right next to each other in the middle of the beach. Which concept predicts the conclusion of this story?

• A) rational ignorance
• B) opportunity cost
• C) diffuse costs and concentrated benefits
• D) median voter theorem

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Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of no exposure to the conditioned stimulus.

Latent Learning

Learning that occurs without noticeable reinforcement and is not demonstrated until there is an incentive to perform.

Vicarious Learning

The process of learning behaviors or forming attitudes based on observing the actions of others and the consequences of those actions.

Insight

The capacity to gain an accurate and deep intuitive understanding of a person or thing, often resulting in a sudden clear solution to a problem.