Which of the Following Is an Example of Rationalization

question 95

Multiple Choice

Which of the following is an example of rationalization?

• A) Phil fails to recognize his attraction to his son's date.
• B) Bernard asks a professor to raise his grade; when the professor refuses, Bernard throws a temper tantrum.
• C) Paul redirects anger from his boss to his dog.
• D) Hua explains that he ate an entire chocolate cake so that it wouldn't spoil the summer heat

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Definitions:

Excess Capacity

The situation where a company is producing less than its full potential output due to lack of demand or other constraints.

Efficient Scale

The level of production at which a firm achieves the lowest average total cost, with economies of scale fully exploited.

Business-Stealing Externality

Negative impacts on existing firms due to entry of new competitors, which can steal customers and reduce profits.

New Firms

Companies that have recently entered the market, bringing innovation, competition, and potentially disrupting established market dynamics.