"The Loss of Profits Resulting from Higher Production Costs Is

question 33

Essay

"The loss of profits resulting from higher production costs is often less than the loss of profits that would occur from raising prices to try to recoup those costs" Why might this be so?

---

Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary body functions such as heart rate and digestion.

Two-Factor Theory

A psychological model proposing that human emotions depend on a state of physiological arousal and a cognitive interpretation of that arousal to experience emotion.

James-Lange Theory

A theory of emotion that proposes emotional experiences result from physiological responses to external stimuli.

Facial Expressions

The movements of the facial muscles that convey an individual's emotions, intentions, or social information to others.