Planning Fallacy Is One Common Form of

question 17

Multiple Choice

Planning fallacy is one common form of

• A) confirmation bias.
• B) illusion of control.
• C) predictability bias.
• D) optimistic bias.
• E) control bias.

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Definitions:

Markup Percentage

The percentage added to the cost of goods to determine the selling price, reflecting the profit margin on sales.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Rate of Return

A measure of the profitability or efficiency of an investment, expressed as a percentage of the original investment.

Variable Cost Concept

A principle in economics that refers to costs that vary directly with the level of production or service activity.