Judgmental and decision heuristics are:
A. rules of thumb that reduce computation costs.
B. a way of calculating computation costs.
C. derived from the rational choice model but imply higher computation costs.
D. used to test the rational choice model when computation costs are small.
Answer: A
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For a perfectly competitive firm, the price of its good is equal to the firm's marginal revenue because
A) information about price changes is hard to come by for small sellers. B) price and marginal revenue are the same economic concepts. C) individual perfectly competitive firms cannot influence the market price by changing their output. D) the firm's total revenue cannot be changed by anything the firms can do. E) there are only a small number of firms in the market.