Assume That All of the Inputs Used in a Particular

question 141

Multiple Choice

Assume that all of the inputs used in a particular perfectly competitive industry can be increased without bidding up their prices.The long run supply curve for that industry will be:

• A) vertical.
• B) upward sloping.
• C) horizontal.
• D) downward sloping.

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind, affecting the perception of the frequency or likelihood of events.

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes, though they may sometimes lead to biases or inaccuracies.

Planning Fallacy

The tendency for individuals or organizations to underestimate the time, costs, and risks of future actions and overestimate the benefits.

Behavioral Economics

A field of economic research that examines how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions.