Students Were Asked to Figure Out the Rule Used to Devise

question 132

Multiple Choice

Students were asked to figure out the rule used to devise the three-number sequence 2-4-6.After generating sets of three numbers to learn whether their sets met the rule,they typically convinced themselves of the wrong rule.Their errors best illustrate the impact of

• A) divergent thinking.
• B) the availability heuristic.
• C) framing.
• D) confirmation bias.

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Definitions:

Revenue Maximization

The process or strategy aimed at increasing the total income generated from sales before deducting any expenses.

Bertrand Competition

A model in economic theory in which competing firms choose their prices simultaneously and independently to maximize profits under the assumption that products are homogeneous.

Duopoly

A market structure characterized by two dominant firms controlling the majority of the market share.

Stackelberg Leader

A firm in a duopoly that maximizes its profit by making the first move and setting its output level, anticipating the response of the follower firm.