The City Council Is Discussing Whether a License to Operate

question 200

Multiple Choice

The city council is discussing whether a license to operate a new bar should be approved. Each member is slightly against approval. What is the group decision likely to be and why?

• A) The council will be in favor of the license because of group think.
• B) The result will be a split vote because of social loafing.
• C) The vote will be against the license because of the group polarization effect.
• D) The result will be a split vote because of the group polarization effect.

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Definitions:

Fixed Costs

Fixed costs, which are unaffected by the volume of production or sales, encompassing charges like lease payments, employee salaries, and insurance fees.

Insurance

A financial product sold by insurance companies to safeguard against the risk of financial loss.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.

Labor

Human effort, whether physical or mental, contributed to the production of goods and services.