Malcolm Has Been Watching a Roulette-Type Game at a Local

question 99

Multiple Choice

Malcolm has been watching a roulette-type game at a local charity bazaar.The game has only 10 numbers on the wheel,and every number except 8 has come up as a winner during the last 15 minutes.Malcolm decides to bet $10 on number 8,because it has to come up eventually.What has influenced Malcolm's choice in this case

• A) gambler's fallacy 
• B) availability heuristic 
• C) base rate fallacy 
• D) conjunction fallacy

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Definitions:

Purely Competitive

Characterizes a theoretical market structure emphasizing perfect competition, where numerous small firms face no barriers to entering or exiting the market.

Long Run

A period in which all inputs, including capital, are variable, allowing firms to adjust all factors of production.

Underallocation Of Resources

A situation where resources are not optimally distributed, often leading to inefficiencies and missed opportunities in the market.

Purely Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and the freedom of entry and exit, resulting in firms being price takers.