Rick finds a great Internet deal on an all-inclusive vacation rental in the Tropics for $1200,and immediately places a $1000 nonrefundable deposit on it.He later learns that the dates he planned to go are right in the middle of hurricane season,and it is likely to be miserable and potentially dangerous weather the entire time.Rick decides he cannot waste the $1000 and takes the trip anyway.While sitting in the rain,miserable,Rick realizes he should have been more rational and:

Question

Quizplus · Accepted Answer

Rick should have ignored his sunk cost of $1000 and made a rational decision based on the current situation. The fact that he had already paid $1000 is a sunk cost and cannot be recovered. It should not be a factor in his decision-making process going forward. He should only consider the potential benefit and risks of continuing with the vacation in the current circumstances.

Rick Finds a Great Internet Deal on an All-Inclusive Vacation