Escalation of Commitment Occurs When Employees Increase Their Support for a Decision

question 168

True/False

Escalation of commitment occurs when employees increase their support for a decision because most of their colleagues also support that decision.

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Definitions:

Elastic Demand

A situation where the quantity demanded of a good or service is sensitive to changes in its price.

Total Revenue

The total income earned by a company from its sales of goods or services before any costs or expenses are subtracted.

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high response to price changes.

Revenue-Maximizing

The strategy of setting prices and production levels to achieve the highest possible revenue, not necessarily leading to the highest profit.