People consistently consider sunk costs when weighing the trade-offs involved in a decision because:
A. they are rational.
B. they think at the margin.
C. they find it hard to accept their losses.
D. they are utility-maximizers.
Answer: C
You might also like to view...
What are the differences between national income, personal income, and disposable personal income?
What will be an ideal response?
Which of the following is not among the first steps the textbook recommends be taken to reduce negative externalities?
A) Adjudication B) More scientific research C) Negotiation D) The cultivation of civic virtues
Fixed exchange rates are fixed by
a. international speculators who manipulate the world's currencies. b. international demand and supply. c. national governments. d. All of the above are correct.
The story of the prisoners' dilemma shows why
a. predatory pricing is clearly not in society's best interest. b. economists are unanimous in condemning resale price maintenance, since it inevitably reduces competition. c. oligopolies can fail to act independently, even when independent decision-making is in their best interest. d. oligopolies can fail to cooperate, even when cooperation is in their best interest.