Figure 10-13

question 363

Multiple Choice

Figure 10-13. On the graph, Q represents the quantity of plastics and P represents the price of plastics.
-Refer to Figure 10-13. Each unit of plastics that is produced results in an external

• A)cost of $6.
• B)cost of $8.
• C)benefit of $6.
• D)benefit of $8.

Identify and explain the phenomenon of decision fatigue and its consequences.

Describe group polarization and its effects on group decisions.

Understand the symptoms and consequences of groupthink.

Recognize the process and effects of escalation of commitment in decision-making.

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Definitions:

Consumer Preferences

The specific desires, likes, and dislikes that influence the purchasing behavior of consumers.

Economic Profit

The profit a company makes after deducting both its explicit (actual cash outflows) and implicit (opportunity) costs.

Profit Motive

The driving force behind business activities focused on achieving financial gain.

Long-Run Economic Profit

The sustainable profit a firm earns over time, assuming entry and exit in the market are possible and adjustments have been made.