The Irrational Escalation of Commitment Bias Refers to

question 54

Multiple Choice

The irrational escalation of commitment bias refers to

• A) the standard against which subsequent adjustments are measured during negotiation.
• B) the perspective or point of view that people use when they gather information and solve problems.
• C) how easily information can be recalled and used to inform or evaluate a process of a decision.
• D) a negotiator's commitment to a course of action,even when that commitment constitutes irrational behavior on his/her part.
• E) None of the above refer to irrational escalation of commitment.

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Definitions:

Inelastic

Describes a situation where the demand or supply for a product does not change significantly when the price of the product changes.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage.

Total Revenue

The total amount of money a firm receives from the sale of its goods or services before any expenses are subtracted.

Quantity Demanded

The total amount of a good or service consumers are willing to purchase at a specific price level at a given time.