According to behavioral economics, advertising works because it Multiple Choice exploits the self-serving bias. provides useful information that improves consumers' ability to make decisions. quickly communicates price changes that exploit the law of demand. exploits the recognition heuristic. 2. In the long run: Multiple Choice all costs are fixed costs. fixed costs are greater than variable costs. all costs are variable costs. variable costs equal fixed costs. 3. Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed. Number of Workers Units of Output 0 0 1 50 2 90 3 125 4 140 5 152 6 160 Diminishing marginal returns become evident with the addition of the Multiple Choice fifth worker. first worker. second worker. sixth worker.