As the manager in charge,you must make a decision about the appropriateness of discontinuing research on a new drug.This new drug would save lives,but it is uncertain whether the company can develop it within a reasonable time frame and at a reasonable cost.Your firm has already spent a small fortune on researching this drug. Even though you believe that the company may never recoup its investment on this project,you decide to continue because the firm has already put so much effort into this project.You are guilty of:
A)escalation of commitment.
B)representative heuristic.
C)availability heuristic.
D)satisfying.

Question

Quizplus · Accepted Answer

The manager is guilty of escalation of commitment, which refers to the tendency of decision-makers to persist with an investment of resources despite mounting evidence that it is failing. Despite the uncertainty of the success and cost-effectiveness of the new drug, the manager has decided to continue with the project just because the company has already invested a lot of money into it. This indicates that the manager is ignoring the rational analysis of the situation and is committed to the project due to past investment rather than its actual potential.

As the Manager in Charge,you Must Make a Decision About