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A profit-maximizing firm will hire workers up to the quantity of labor where:
Correspondent Inference
A theory in social psychology that describes the conditions under which we infer the disposition or personality traits of another person based on observed behavior.
External Attribution
The process of assigning the cause of behavior to some situation or event outside a person's control rather than to some internal characteristic.
Availability Heuristic
A cognitive shortcut based on the first examples that spring to mind for someone when assessing a particular subject, idea, approach, or choice.
Mood-Congruent Memory
The propensity to recall memories that are consistent with one's current mood, influencing and reinforcing the emotional state.
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