Explaining Failures and Setbacks in Terms of Factors That Are

question 109

Multiple Choice

Explaining failures and setbacks in terms of factors that are stable,global,and internal is a _____ explanatory style.

• A)negative
• B)positive
• C)realistic
• D)repressive

Describe the rational decision-making model and the significance of assistance at various stages.

Understand escalation of commitment, its causes, and effects.

Relate personality traits to the likelihood of escalation of commitment.

Recognize the treatment and impact of sunk costs in decision making.

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Definitions:

Average Variable Cost

The total variable cost of producing a good divided by the quantity of the good produced, representing the variable cost per unit.

Average Total Costs

The total costs of production (fixed plus variable) divided by the total quantity of output produced, expressing the cost on a per-unit basis.

Economies of Scale

The savings that organizations achieve through their size of operation, where the expense per produced unit consistently decreases with an upscaling in operation.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's size or output increases beyond a certain point.