When Investors Follow a "Herd Instinct," They Make Decisions

question 67

Multiple Choice

When investors follow a "herd instinct," they make decisions:

• A) based on the results of performance analysis.
• B) based on emotion, not objective information.
• C) as a group, inflating the prices of goods somewhat arbitrarily.
• D) based on the sound logic of a group, rather than the individual.

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Definitions:

Source Of Differentiation

Unique features or aspects of a product, service, or brand that set it apart from competitors and provide a competitive edge.

Economies Of Scale

Financial benefits that firms receive from their size of operations, where the cost for every produced unit tends to drop as the operational scale expands.

Low-cost Inputs

Inputs are materials or resources used in the production process, and low-cost inputs refer to acquiring these materials or resources at the lowest possible cost to maximize profitability.

Differentiation Strategy

A business approach focusing on developing and marketing unique products or services to stand out from competitors and attract a specific segment of the market.