A common mistake consumers commit when they make decisions is
A)They take into account nonmonetary opportunity costs but ignore monetary costs.
B)They are overly pessimistic about their future behaviour.
C)They fail to ignore sunk costs.
D)They sometimes value fairness too much.

Question

Quizplus · Accepted Answer

Failing to ignore sunk costs means that consumers consider costs that have already been incurred and cannot be recovered, which should not be relevant for current decisions. This can lead to inefficient decisions and a waste of resources. The other options presented are less common mistakes and do not present such a clear bias in decision-making.

A Common Mistake Consumers Commit When They Make Decisions Is