If the Demand for a Product Increases in an Increasing

question 65

Multiple Choice

If the demand for a product increases in an increasing cost industry, as the market adjusts in the long run:

• A) price will rise.
• B) the firm's per-unit cost will increase.
• C) the firm's per-unit cost will fall.
• D) the market price will return to its initial position.

Relate personality traits to the likelihood of escalation of commitment.

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

Identify examples of cognitive biases in post-decision evaluations.

Understand the concept of perceptual organization and how it influences the perception of elements as part of a whole.

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Definitions:

Inherent Powers

Powers that are not explicitly stated but are implied in the constitution, allowing government to perform actions necessary for its functioning.

Legal Authority

The legally sanctioned power given to individuals or entities to make legal decisions, enforce laws, and administer justice.

Executive Agreements

International agreements entered into by the president that do not require Senate approval, often used in foreign policy.

Formal Treaties

Officially binding agreements between states or nations, governed by international law and formally ratified by the participating entities.