People Generally Prefer to Conserve Effort by Relying on Automatic

question 32

Multiple Choice

People generally prefer to conserve effort by relying on automatic modes of thought (rather than conscious modes of thought) whenever they can. That is, people tend to ____.

• A)rely on base rates
• B)avoid using scripts
• C)make upward comparisons rather than downward comparisons
• D)be cognitive misers

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Definitions:

Profit-maximizing Price

The price level at which a business can achieve the highest possible profit, given its production costs and demand for its products.

Break-even

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

Profit-maximizing

A strategy or condition where a firm adjusts its production to achieve the highest possible profit based on its costs and the market price.

Shut-down Point

The price and quantity point at which a business ceases operations because continuing would result in losses.