Lon authorizes an additional $100,000 for the production of the new product. The cost of the new product seems to be increasing far beyond what was planned or even forecast. However, Lon continues to support the project. Lon is engaging in
A)representative heuristic.
B)optimal decision making.
C)escalation of commitment.
D)availability heuristic.

Question

Quizplus · Accepted Answer

Lon is demonstrating escalation of commitment by continuing to invest in the project despite its increasing costs, showing a commitment to a decision in the face of negative outcomes.

Lon Authorizes an Additional $100,000 for the Production of the New