Escalation of Commitment Refers to the Decision to Continue to Follow

question 105

True/False

Escalation of commitment refers to the decision to continue to follow a failing course of action.

---

Definitions:

Labor

The physical and mental effort used in the production of goods and services, often considered one of the primary factors of production.

Marginal Physical Product

The extra yield obtained by employing an additional unit of a variable factor, while keeping all other factors unchanged.

Total Revenue Product

The total revenue generated from the sale of goods or services produced from a specific input or resource.

Wage Rate

The amount of money paid to a worker per unit of time, usually expressed per hour or year.