The Error in Intuitive Thinking in Which a Choice Is

question 290

Multiple Choice

The error in intuitive thinking in which a choice is given greater weight if it seems to relate to what we already know is called the

• A)framing heuristic.
• B)base rate.
• C)representativeness heuristic.
• D)relational heuristic.

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Definitions:

Total Revenue

The income generated by a company from the sale of its goods or services before any costs or expenses are subtracted.

Total Cost

The complete cost of production which includes both fixed and variable costs.

Perfect Competitors

describes a market structure where many firms sell identical products, and no single seller has any influence over market price.

Market Price

The current price at which a good or service can be bought or sold in the marketplace.