Dr Selman Presented an Idea in a Group Brainstorming Session

question 112

Multiple Choice

Dr. Selman presented an idea in a group brainstorming session. After he shared it with the group, the group generated several new ideas based on what Dr. Selman shared. This example describes

• A) mental set effects.
• B) groupthink.
• C) the cross-stimulation effect.
• D) the Flynn effect.

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Definitions:

Long Run

A period in which all factors of production and costs are variable, and companies can adjust all inputs to the production process.

Market Price

The actual selling price of a good or service in the marketplace, determined by supply and demand.

Price Takers

Market participants who accept prevailing prices because they have no power to influence the market price due to their small market share.

Perfect Competition

A market structure characterized by a large number of small firms, homogeneous products, free entry and exit, and perfect information, leading to firms being price takers.