A Decrease in the Sales of a Current Project Because

question 39

Multiple Choice

A decrease in the sales of a current project because of the launching of a new project is:

• A)cannibalization.
• B)a sunk cost.
• C)an overhead expense.
• D)irrelevant to the investment decision.

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Definitions:

Comparison Effect

The phenomenon where an individual's evaluation of their own abilities, achievements, or conditions is influenced by comparisons with others.

Mere Exposure Effect

The mere exposure effect is a psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Informational Social Influence

"The influence other people have on us because we want to be right."

Principle Of Proximity

A principle in psychology that suggests objects or shapes that are close to one another appear to form groups.