Which of the Following Variables Is Left Out of the Simple

question 136

Multiple Choice

Which of the following variables is left out of the simple economic model of the firm?

• A) the marginal cost of production
• B) consumer tastes and preferences
• C) the fact that many firms actually earn profits
• D) the entrepreneurial decision-making process

---

Definitions:

Biases

A tendency or partiality that favors or discriminates against something, someone, or a group over another, often in a manner deemed to be unjust.

Judgments

Assessments or opinions formed by considering facts, observations, and arguments.

Politically Correct

The avoidance of language or actions that could be offensive to others, particularly in relation to gender, race, or cultural sensitivities.

Dual-Process Approach

A theoretical model that suggests there are two distinct systems in the brain for processing information: one that is intuitive and automatic, and another that is deliberate and reasoning-based.