Arnold Kim began blogging about Apple products during his fourth year of medical school.Kim's website,MacRumors.com,became so successful that he decided to give up his medical career and work full time on his website,despite the nearly $200,000 he had invested in his education.In making his decision,Kim decided to ignore the money and time he spent on his education.Economists would say that Kim made a
A)rational decision to ignore these sunk costs.
B)poor decision since he had already invested his time and money on his medical career.
C)poor decision since doctors are in greater demand than bloggers.
D)hasty decision by not waiting to recoup his financial investment before giving up his medical career.

Question

Quizplus · Accepted Answer

Economists would say that Kim made a rational decision to ignore the sunk costs of his education because these costs were already incurred and cannot be recovered. His decision should be based on the potential future benefits and costs, not past expenses. Additionally, the success of his website indicated that he would likely earn more income and have more job satisfaction as a full-time blogger compared to being a physician.

Arnold Kim Began Blogging About Apple Products During His Fourth