Mental Models Cause Us To

question 90

Multiple Choice

Mental models cause us to:

• A)perceive ourselves as members of several groups that are different from people in other groups.
• B)believe the behaviour of others is caused more by their ability or motivation than the situation.
• C)perceive events as though people are acting on a theatrical stage.
• D)select and organize stimuli in ways that are consistent with our broad world views.
• E)change our personality whenever we develop new mental models.

---

Definitions:

Excess Profit

Profit earned by a firm that exceeds the normal level of profit in its industry, often due to monopolistic power or a lack of competition.

Economic Profit

The difference between the total revenue earned from production and the total costs (including both explicit and implicit costs) involved in the creation of that production.

Excess Profit

Profit earned by a firm that exceeds the normal profit level, often due to monopolistic power or market inefficiencies.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.