Escalation of Commitment Refers to Staying with a Decision Even

question 43

True/False

Escalation of commitment refers to staying with a decision even when there is clear evidence it's wrong.

---

Definitions:

Duopoly

A market structure in which two companies own all or nearly all of the market for a given product or service.

Price Effect

The impact on demand when the price of a product or service changes, influencing consumers' buying decisions.

Marginal Cost

The additional expense required to produce an extra item or unit of output, emphasizing its role in economic decision-making.

Fixed Cost

A cost that does not change with the amount of goods or services produced, such as rent, salaries, or loan payments.