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Assume That the Personal Computer Industry Is Perfectly Competitive

question 171

True/False

Assume that the personal computer industry is perfectly competitive.The fact that the price of personal computers over the last decade has fallen despite increases in demand signifies that the industry is a decreasing-cost industry.


Definitions:

Loftus

A cognitive psychologist known for her work on the malleability of human memory and the misinformation effect.

Misinformation Effect

The phenomenon in which a person's recall of episodic memories becomes less accurate due to post-event information.

State-dependent Memory

The phenomenon that information learned in a particular state of consciousness is more easily recalled when in that same state of consciousness.

Proactive Interference

The phenomenon where old memories hinder the recall of newer memories.

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