Shawn McGill Is on the Executive Board for ABC Pharmaceuticals

question 130

Multiple Choice

Shawn McGill is on the executive board for ABC pharmaceuticals.The company produces the number one selling cancer fighting drug on the market.Due to its incredible success ABC pharmaceuticals has decided to increase the cost of the drug from $8 a pill to $15 a pill.Which force is ABC pharmaceutical using to increase its drug price?

• A)Supplier power
• B)Buyer power
• C)Threat of false entrants
• D)Business power

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Definitions:

Framing Error

A cognitive bias where the way information is presented influences decision making or judgment.

Escalation

The process of increasing or intensifying a situation or conflict, often leading to a more serious state.

Overconfidence

A cognitive bias where someone's subjective confidence in their judgments is greater than their objective accuracy.

Short-Term Thinking

A focus on immediate results or benefits at the expense of longer-term goals or implications.