An Application of Behavioral Economics Is

question 5

Multiple Choice

An application of behavioral economics is:

• A) time inconsistency.
• B) thinking irrationally about costs.
• C) forgetting the fungibility of money.
• D) All of these are applications of behavioral economics.

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Definitions:

Market Competition

The rivalry among companies to attract customers and gain market share by offering better products, services, and terms.

Bid Rigging

An agreement among firms to not bid against one another or to submit a certain level of bid.

Price Fixing

A restraint of trade in which two or more competitors agree to set prices for a product or service.

Category

A class or division of items or people with shared characteristics, used for purposes of organization, analysis, or classification.