The Availability and Representativeness Heuristics Sometimes Can Operate in Tandem

question 23

Multiple Choice

The availability and representativeness heuristics sometimes can operate in tandem.The joint effect of these two heuristics can create a(n)

• A) unmemorable association.
• B) co-occurrence fallacy.
• C) statistical association.
• D) illusory correlation.

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Definitions:

Economically Inefficient

A condition where resources are not utilized in the best possible manner, leading to potential waste or losses in terms of welfare or output.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the per-unit cost of production.

Marginal Cost

Refers to the increase in total production costs resulting from the production of one additional unit of a good or service.

Single-Price

A pricing strategy where a product is sold at the same price to all customers under similar conditions.