What Is the Perseverance Effect

question 7

Multiple Choice

What is the perseverance effect?

• A) A concept that describes how people's beliefs and schemas persist despite contradictory information.
• B) A concept that describes people who are extremely determined even in the face of opposition.
• C) An effect that counteracts the stereotyping effects of role schemas.
• D) An effect similar to the Rashomon effect, but harder to eliminate in one's thinking.
• E) None of the above

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Definitions:

Price Leadership

A situation where a leading company sets prices that other firms in the market follow.

Tacit Collusion

An unspoken, informal agreement among competitors to avoid competitive behaviors like price wars, leading to higher prices for consumers.

Oligopolies

Market structures in which a few large firms dominate the industry, having significant market power to influence prices and terms of sale.

Market Power

The ability of a firm to influence or control the price and output level in the market.