_______________ Are Rules of Thumb, or Shortcuts People Use to Make

question 19

Multiple Choice

_______________ are rules of thumb, or shortcuts people use to make decisions.

• A) Analytics
• B) Logic machines
• C) Sunk costs
• D) Heuristics
• E) Groupthinks

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Definitions:

Perfect Competitor

A theoretical firm in a perfectly competitive market where no single buyer or seller has the market power to influence prices.

Long Run

The long run is a period in which all factors of production and costs are variable, allowing for complete adjustment to changes.

Short Run

A period of time during which at least one of a firm's inputs is fixed, limiting its ability to adjust to changes in market demand or supply.

Many Firms

A situation in a market where numerous firms compete against each other to sell their products or services.