After Crispy Foods Ltd

question 120

Essay

After Crispy Foods Ltd.had poured millions of dollars into the development of a new machine-made potato chip (a product that appeared to be a failing endeavor early in the development process), the Board of Directors of the food-processing firm fired the CEO who had proposed and championed the product's continued development.The new CEO's first task is to find out why this monumental waste of money had occurred and how it can be prevented in the future.Describe two procedures that the new CEO at Crispy Foods Ltd.can implement that will prevent or minimize this type of escalation of commitment in the future.Be sure to write your referring to this specific incident.

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Definitions:

Unit Elastic

A scenario in demand or supply where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Tax Lowered

The reduction of the rates at which individuals or corporations are taxed by the government.

Demand and Supply

Refers to the economic model that determines the price of goods in a market based on the quantity demanded by consumers and the quantity supplied by producers.

False and Deceptive

Activities or practices that intentionally mislead consumers or misrepresent facts for gain.