If You Exhibit the Endowment Effect as a Decision Maker

question 149

Multiple Choice

If you exhibit the endowment effect as a decision maker, then you are

• A)deciding on the basis of sunk costs.
• B)buying something you can't really afford because you expect to save in the future.
• C)ignoring opportunity costs.
• D)consuming based on celebrity endorsements.

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Definitions:

Clayton Act

A U.S. antitrust law enacted in 1914, aimed at promoting competition and preventing monopolies by prohibiting anti-competitive practices.

Oligopoly

A market structure characterized by a small number of firms controlling the majority of the market share, leading to limited competition.

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not identical, allowing for some degree of market power.

Technology

The application of scientific knowledge for practical purposes, especially in industry, to invent tools, devices, and systems that solve problems or enhance capabilities.