If Tommy's Tank Tops Is in a Competitive Industry and Is

question 105

Multiple Choice

If Tommy's Tank Tops is in a competitive industry and is currently making positive economic profits of $1,000:

• A) firms will want to enter the market.
• B) firms will want to exit the market.
• C) individuals will demand more tank tops.
• D) individuals will demand fewer tank tops.
• E) the market supply curve will shift to the left.

---

Definitions:

Scientific Method

A systematic process for investigating phenomena, acquiring new knowledge, or correcting and integrating previous knowledge, based on empirical or measurable evidence.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used.

Representative Heuristic

A mental shortcut that involves making judgments based on how well something matches existing prototypes or stereotypes in our minds.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often leading to a solution that is good enough rather than perfect.