Having Committed Large Amounts of Manpower and Money to His

question 46

Multiple Choice

Having committed large amounts of manpower and money to his landscaping business, Tony continues to keep the business running despite incurring heavy losses. What is the source of Tony's cognitive bias?

• A) Escalating commitment
• B) Illusion of control
• C) Prior hypothesis bias
• D) Representativeness bias
• E) Dialectical inquiry

---

Definitions:

Rivers And Harbors Act

A United States federal law enacted in 1899, regulating the development and management of the nation's waterways to protect navigable waters and prevent obstructions.

Endangered Species Act

A U.S. law enacted in 1973 aimed at protecting species threatened with extinction.

Price Elasticity

The measure of how much the quantity demanded or supplied of a good changes in response to a change in its price.

Capacity Constraints

Limitations on the maximum output a system can produce due to physical or resource-based limitations.