Self-Serving Bias Can Be Adaptive in That It

question 18

Multiple Choice

Self-serving bias can be adaptive in that it:

• A)enables us to exhibit realistic optimism about our futures.
• B)decreases our vulnerability through illusory optimism.
• C)allows us to savor the good things that happen in our lives.
• D)prevents us from blaming others when things go wrong.

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Definitions:

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, indicating how much it contributes to covering fixed costs and generating profit.

Cost Volume Profit Analysis

A method used to determine how changes in costs and volume affect a company's operating income and net income.

Long-Run Decision Making

Strategic decisions focused on long-term goals and considerations, typically involving investments in capacity or capabilities that affect a firm's structure.

Short-Run Decision Making

The process of making business decisions that are immediate or temporary, focusing on situations that do not alter the fixed costs.