Mikkel purchases two hours of skate time at the local hockey rink. After skating for one hour, Mikkel is cold, tired, and hungry. If Mikkel decides to continue skating for the second hour, he is likely:

Question

Quizplus · Accepted Answer

Mikkel is focusing on the sunk cost of the purchased skate time if he decides to continue skating despite being cold, tired, and hungry. The sunk cost is the money already spent on the skate time, which cannot be recovered, and making decisions based on it rather than current well-being or other opportunities represents a common economic fallacy.

Mikkel Purchases Two Hours of Skate Time at the Local