CharmingBells Inc

question 60

Multiple Choice

CharmingBells Inc. has been running into a loss gradually, but the board of directors are reluctant to shut the company down because it has invested millions of dollars' worth of equipment which can only be used in that industry. Moreover, the people in CharmingBells Inc. have become emotionally attached to the company and do not want the company completely shut down. This scenario best illustrates ________.

• A)high fixed costs
• B)used production capacity
• C)high exit barriers
• D)unused production capacity

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Definitions:

Classically Conditioned

Pertains to a learning process in psychology where an association is made between a naturally occurring stimulus and a previously neutral stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Behavioral Approach

A psychological perspective focusing on observable behaviors and the ways in which they can be learned, changed, or extinguished.

Habitual Behaviors

Actions that are regularly practiced, often performed unconsciously due to being ingrained through repetition in daily routines.