$11-$ A company had launched a product line a year ago, and the product line was very

successful. The managers of the company plan to launch a similar product line in the next

few weeks. Their decision is based on the assumption that the new product line will lead to

high profits because it is similar to previous year's successful product line. They ignore

information related to current market conditions, customer needs and the products of rival

companies. Which of the following concepts related to decision$-$making does this scenario

most likely exemplify?

a$.$ Representativeness bias

b$.$ Confirmation bias

c$.$ Emotional attachment

d$.$ The illusion of control

$12-$Finch & Co$.$ is a tobacco company that holds monopoly in the cigarette market. However,

the management of Finch & Co$.$ is worried that a recent launch of e$-$cigarettes will take away

part of its market share because e$-$cigarettes can be an alternative to cigarettes and deter

customers from purchasing the latter. Which of the following Porter's forces does this

scenario best exemplify?

a$.$ The bargaining power of suppliers

b$.$ The threat of substitutes

c$.$ The bargaining power of customers

d$.$ The threat of entry