Jerry Starts His Own Business Even When He Is Advised

question 85

Multiple Choice

Jerry starts his own business even when he is advised by family and friends that it is not a suitable opportunity. His friends feel that the market is uncertain and a new entry at this juncture is inadvisable. Jerry soon realizes that his friends were right and he should have taken their advise. In spite of himself, he is forced to admit that the market situation is such that it would take more than being a good entrepreneur to survive. Which of the following is Jerry experiencing?

• A) exploitation
• B) anchoring
• C) information bias
• D) illusion of control
• E) reactance

---

Definitions:

Marginal Utility

The extra pleasure or advantage gained from consuming an additional unit of a product or service.

Total Utility

The complete satisfaction or pleasure a consumer derives from consuming a particular quantity of goods or services.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget and prices.

Product Prices

The amount of money required to purchase a good or service, determined by various factors including production costs, demand, supply, and market competition.