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If a Business Owner Is Using the Extra Space at Home

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Essay

If a business owner is using the extra space at home for his business, does it imply a zero opportunity cost for the space?


Definitions:

Representativeness Heuristic

A cognitive shortcut where the likelihood of something is judged based on how similar it is to a typical case.

Confirmation Bias

The propensity to seek out, interpret, prefer, and remember data in a manner that validates one's already established beliefs or theories.

Mental Set

A tendency to approach a problem in one particular way, often a way that has been successful in the past.

Particular Way

A specific manner, method, or approach to doing something.

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