Focusing on Some Aspects of the Environment and Ignoring Other

question 56

Multiple Choice

Focusing on some aspects of the environment and ignoring other elements is called:

• A) Optical illusion
• B) Selective perception
• C) Visual perception
• D) Bias in perception

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Definitions:

AVC

Average Variable Cost, which is the variable cost per unit of output.

Long-run Equilibrium

A state in which all factors of production and costs are variable, leading to a situation where economic profits have been normalized or eliminated due to competition.

Constant Costs

Costs that do not change with the level of output or activity within a certain range.

Short-run Supply Curve

A graphical representation showing the relation between the price of a product and the quantity of the product that a firm is willing and able to sell, given fixed resources.