You Don't Particularly Like to Shop So Only Go to the Mall

question 61

Multiple Choice

You don't particularly like to shop so only go to the mall once a month. To help make the trek more enjoyable, you always have lunch at the restaurant located inside the mall. Since you are such a
Creature of habit, you always order the same meal. You've noticed that the price of that meal has
Increased every time you have been there over the past six months. Thus, you expect the meal to
Increase in price next month. This is an example of which one of the following?

• A) Recency bias.
• B) Anchoring and adjustment.
• C) Frame dependence.
• D) Aversion to ambiguity.
• E) Clustering illusion.

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Definitions:

Pure Monopoly

A market structure where a single supplier dominates the market, with no close substitutes for the product or service offered, leading to high control over prices.

Barriers to Entry

Economic, procedural, or regulatory obstacles that prevent new competitors from easily entering an industry or area of business.

Barriers to Entry

Obstacles that make it difficult for new firms to enter a market, such as high startup costs or stringent regulations.

X-inefficiency

The production of output, whatever its level, at a higher average (and total) cost than is necessary for producing that level of output.