Which of the Following Is an Example of Escalating Commitment

question 80

Multiple Choice

Which of the following is an example of escalating commitment?

• A) Polie is good at making hand-stitched decorative items like curtains, cushions, and so on. She starts selling them and notices that the demand for her items is increasing in neighboring areas. She hires two helpers and trains them to create more items to match the increasing demand.
• B) Loana starts her dream restaurant without any business experience. After six months, it becomes clear that her restaurant is not a successful venture. Loana continues to invest in the restaurant because she feels that she can turn it into a successful venture.
• C) Orlando, a senior manager in a manufacturing firm, wants to eliminate channel partners from the selling process. As a trial, he eliminates channel partners of one area of the city to see if it has an impact. This action results in increased sales in the area. Orlando then eliminates channel partners of the entire city and expects similar results.
• D) Beth is a highly motivated individual. Her motivation not only helps her productivity at work, but also motivates her colleagues to work better than they normally do.

Recognize the role and limitations of different research methods, including case studies, experiments, and correlation studies.

Understand the concept of generalizability in psychological research.

Grasp the importance of manipulating independent variables in establishing cause-and-effect relationships.

Understand the process of hypothesis testing and the evaluation of research findings.

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Definitions:

Inputs

Resources used in the production process, including labor, capital, materials, and energy.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Total Revenue

The overall income generated by a business from its sale of goods or services, calculated as the price per unit times the number of units sold.

Elasticity Of Supply

A measure of how much the quantity supplied of a good changes in response to a change in price.