Which of the Following Is a Production Decision

question 17

Multiple Choice

Which of the following is a production decision?

• A)How much output the firm should produce in the long run.
• B)Whether the firm should shut down or produce.
• C)Whether the firm should exit or enter the market.
• D)Whether the firm should merge with one of its rivals.

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Definitions:

Actions

Behaviours or deeds performed by individuals in response to external or internal stimuli.

Conformists

Individuals who comply with group norms or standards.

Base Rate Fallacy

The tendency to ignore or underuse base rate information and instead to be influenced by the distinctive features of the case being judged

Representativeness Heuristic

A cognitive shortcut where an individual assesses the probability of an event based on how similar it is to the typical case.