Explaining the Behavior of Out-Group Members on the Basis of the Characteristic

question 101

Multiple Choice

Explaining the behavior of out-group members on the basis of the characteristic that sets them apart is known as the

• A) fundamental attribution error.
• B) self-fulfilling prophecy.
• C) out-group homogeneity effect.
• D) out-group heterogeneity effect.

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Definitions:

Natural Monopoly

A market situation where a single firm can supply a product or service at a lower cost than any potential competitor, often due to economies of scale.

Substitutes

Alternative goods or services that can satisfy the same needs as another, often leading to a choice between the two based on price, convenience, or preference.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect knowledge, where no single firm can influence the market price.

Profit-Maximizing

The method through which a company identifies the pricing and production quantity that maximizes its profits.