Explain the Phenomenon of Groupthink and the Conditions That Make

question 100

Essay

Explain the phenomenon of groupthink and the conditions that make it most likely to occur. Name at least two historical events that took place as a result of groupthink.

---

Definitions:

Output Effect

The change in total revenue resulting from selling more units at a lower price, in the context of price elasticity of demand.

Socially Efficient

An allocation of resources is considered socially efficient if it cannot be reallocated in a way that improves the wellbeing of one individual without worsening the situation of another.

Collude

To collaborate secretly and illegally with others with the aim of deceiving or obtaining an unfair benefit.

Controlling

The process of measuring performance and taking action to ensure desired results.