Which of the Following Best Illustrates the Fallacy of Composition

question 126

Multiple Choice

Which of the following best illustrates the fallacy of composition?

• A)​If I stand up at a baseball game I will be able to see the game better; if all fans stood up at a baseball game they would all be able to see the game better.
• B)​If I wore a jacket to a baseball game in October, I would be warmer; if all fans wore jackets they would all be warmer.
• C)​If I purchase fewer concessions at a baseball game, I will save money; if all fans purchase fewer concessions then all can save money.
• D)​If I yell more during a baseball game it will be louder if all fans yell more during the game it will be much louder.

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Definitions:

Total Revenue Curve

A graphical representation showing how total revenue changes as the quantity sold of a good or service varies, holding all else constant.

Marginal Revenue Curve

A graphical representation showing the change in total revenue with respect to changes in the quantity of goods or services sold.

Downsloping

Characterizes a line or curve on a graph that decreases in value as it moves from left to right, often used in reference to demand curves.

Pure Monopoly Firm

A market structure where a single entity exclusively controls the supply of a product or service without any close substitutes.