Because Jess Didn't Have the Time to Understand the Issue

question 149

Multiple Choice

Because Jess didn't have the time to understand the issue, she did not vote on the amendment about clean energy. Jess's behavior demonstrates the economic principle of

• A) diminishing marginal utility.
• B) voting preferences.
• C) rational ignorance.
• D) minimum differentiation.

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Definitions:

Excess Capacity

A situation where a company can produce more goods or services than currently demanded, often leading to inefficiencies and lowered prices.

Monopolistically Competitive

Characterizes a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power in setting prices.

Barriers To Entry

Factors that prevent or hinder the ability of a new competitor to enter an industry or market.