Reactive Devaluation

question 18

Multiple Choice

Reactive devaluation

• A) leads negotiators to minimize the magnitude of a concession made by a disliked other.
• B) leads to reduced willingness to respond with a concession of equal size.
• C) may be minimized by maintaining a more objective view of the process.
• D) can lead to motivation to seek even more once a concession has been made.
• E) All of the above are elements of reactive devaluation.

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Definitions:

Annual Fixed Costs

The total of all business expenses that are constant and do not change with the level of goods or services produced within a given time period, typically a year.

Cash Break-Even

The point at which a business generates just enough cash flow to cover its operating expenses, not accounting for any profitability.

Selling Price

The amount of money a buyer pays to purchase a product or service.