What Does the Term "Escalation of Commitment" Mean

question 169

Multiple Choice

What does the term "escalation of commitment" mean?

• A) As a project proceeds toward successful completion, managers make an increased commitment to doing a good job
• B) The actions that managers take as they try to get the outcomes they desire
• C) As a project proceeds, managers become increasingly committed to it even if there is evidence that it is not working out as planned
• D) It refers to how much a manager is willing to gamble when making decisions
• E) None of these

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Definitions:

Marginal Utility

The extra pleasure or advantage obtained when consuming an additional unit of a product or service.

Utility Schedule

A table showing the different levels of satisfaction (utility) a consumer gets from consuming varying quantities of a good or service.

Utility Schedule

A representation that shows various quantities of a commodity or service and the utility or satisfaction derived from each.

Marginal Utility

The augmented satisfaction or value derived from the consumption of one extra unit of a product or service.