When Asked to Guess Whether Mark Is from Montana or California

question 45

Multiple Choice

When asked to guess whether Mark is from Montana or California, you guess California because more people live in California. You have used __________ in making your decision.

• A) the representativeness heuristic
• B) base rate information
• C) the availability heuristic
• D) counterfactual thinking

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Definitions:

Sole Producer

A market situation in which only one company or entity provides a particular product or service, often leading to a monopoly.

Marginal Cost

The investment needed to manufacture an additional unit of a product or service.

Demand Schedule

A table that lists the quantity of a good that consumers are willing to purchase at various prices.

Monopoly

A market structure characterized by a single seller who has exclusive control over the supply of a particular good or service, making them the sole provider.