Jason spends all afternoon baking a cake. When it comes out of the oven, it's burnt and sunk in the middle. Jason thinks about all the time he invested in making the cake and decides to frost and eat it anyway, even though it tastes pretty terrible. Jason's decision to decorate and eat the cake is an example of:
A) focusing on sunk costs.
B) ignoring sunk costs.
C) thinking marginally.
D) weighing the opportunity costs of frosting and eating the cake against the benefits of doing so.
Correct Answer:
Verified
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