Frank Was Supposed to Push Three Wheelbarrows Back to the Barn,and

question 53

Multiple Choice

Frank was supposed to push three wheelbarrows back to the barn,and he wasn't relishing the idea of three trips.Then in a flash he reorganized the problem.He loaded two wheelbarrows onto the third and made one trip.In doing this,he demonstrated

• A)flexibility.
• B)functional fixedness.
• C)insight.
• D)response set.

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Definitions:

Marginal Revenue

The boost in revenue experienced by a company when it sells an extra unit of its goods or services.

Purely Competitive Firm

A company that operates in a market where there are many sellers and buyers, the products are homogeneous, and there is free entry and exit from the market.

Vertical Axis

The y-axis in a graph, which typically shows the range of values for the variable measured.

Pure Competition

A market structure featuring a large number of small firms selling identical products, with no single firm able to influence market price.