Groups Sometimes Make Faulty Decisions Because of What Has Been

question 30

Multiple Choice

Groups sometimes make faulty decisions because of what has been called "presumptive shift." Which of the following describes a presumptive shift in decision-making?

• A) The managers ask the group to reconsider a decision they previously made.
• B) The managers change the criteria that the group must use to justify its decision.
• C) A group goes back and changes its mind about which decision is the best after originally making a decision.
• D) A group decides that the most important criteria for a decision are different than they originally thought.

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Definitions:

Herfindahl Index

A parameter for comparing the dimensions of enterprises within their industry, revealing the competition scope.

Concentration Ratio

A measure of the market share or dominance controlled by the largest firms within an industry, used to assess market competitiveness.

Herfindahl Index

A measure of market concentration that sums the squares of the market shares of all firms within an industry.

Economic Profit

The profit or loss calculated by taking the total revenue of a firm and subtracting all its costs, both direct and indirect.