Which of the Following Is a Guideline for Managers to Avoid

question 98

Multiple Choice

Which of the following is a guideline for managers to avoid the negative effects of cognitive biases?

• A) Concentrate on planning for the future instead of conducting a retrospective analysis.
• B) Reward middle managers irrespective of whether they fail or succeed to implement a decision.
• C) Rank various alternatives even when all relevant information is not available.
• D) List the criteria that are being used to assess and evaluate alternatives.
• E) Persist with economically superior alternatives despite the threat of cannibalization.

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Definitions:

Marginal Revenue

The rise in income generated by selling an extra unit of a product or service.

Maximizing Profit

The process of making business decisions that increase a firm's earnings to its highest possible level.

Total Revenue

The total income a business receives from selling its goods or services, calculated by multiplying the price per unit by the number of units sold.

Competitive Firm

A company that operates in a market with many other firms, selling similar or identical products or services, where no single firm can influence market prices.