Which of the Following Statements Is TRUE? I

question 24

Multiple Choice

Which of the following statements is TRUE? I. A free market minimizes the total costs of producing output. II. In a free marke III. Every firm faces the same price in a competitive market.

• A) I and II only
• B) III only
• C) I and III only
• D) I, II, and III

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Definitions:

Uncertain

The state of being not exactly known, established, or defined, often leading to ambiguity or unpredictability.

Specialized Cognitive Mechanisms

Brain functions or structures evolved to solve specific problems of survival or reproduction.

Evolutionary Perspective

An approach in psychology that explains mental and psychological traits—such as memory, perception, or language—as adaptations, i.e., as the functional products of natural selection.

Inferential Heuristics

Mental shortcuts that allow individuals to make judgments and solve problems quickly but can sometimes lead to errors in reasoning.