In Discussing a Given Set of Alternatives and Arriving at a Solution

question 58

Multiple Choice

In discussing a given set of alternatives and arriving at a solution, group members tend to exaggerate the initial positions they hold. This phenomenon is called ________.

• A) self-concordance
• B) groupshift
• C) satisficing
• D) emotional labor
• E) groupthink

---

Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded; the market price where no surplus or shortage exists.

Marginal Revenue

The additional income earned from selling one more unit of a good or service; it's a crucial concept for understanding how firms decide on output levels.

Purely Competitive Industry

An industry characterized by a large number of small firms producing identical products with no single firm able to influence the market price.

Purely Competitive Market

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and ease of entry and exit, leading to price-taking behavior.