A Manager Catches an Employee Coming into Work Late, and Therefore

question 74

Multiple Choice

A manager catches an employee coming into work late, and therefore decides that a new companywide policy on tardiness is needed in order to improve productivity. This is an example of which of the following cognitive biases?

• A) Illusion of Control
• B) Frequency
• C) Groupthink
• D) Ego-defensiveness

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Definitions:

Constant-cost Industry

An industry in which the costs of production, including the prices of raw materials and wages, do not change as the industry's output changes.

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing for full adjustment to any changes in the market.

Market Price

The price at which goods can be sold or bought in a market, reflecting the supply and demand dynamics at any given time.

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output supplied by the industry.