The Insufficient Justification Effect Refers to the

question 23

Multiple Choice

The insufficient justification effect refers to the

• A) reduction of dissonance by internally justifying one's behaviour when external justification is "insufficient."
• B) reduction of dissonance whenever needed.
• C) reduction of dissonance under extremely stressful situations.
• D) none of the choices are correct.

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Definitions:

High Fixed Costs

A financial situation where a company has a high proportion of fixed expenses, which do not vary with the level of production or sales.

High Marginal Costs

Situations where the cost to produce one additional unit is significantly high, often affecting pricing and profitability.

High Industry Growth

Refers to the rapid expansion of economic activity within a particular industry, typically measured by revenue, output, or sales increases.

Concentration of Buyers

Refers to a market situation where a small number of buyers control a large share of the market, potentially affecting pricing and competition.