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Keith Just Got an IPhone 5 for His Birthday,and He

Question 75

Multiple Choice

Keith just got an iPhone 5 for his birthday,and he quickly switches his data over and throws his iPhone 4 in a drawer and forgets about it.Economists would say this behavior is ___________ and would use the concept of ________________ to explain this choice.


A) rational; the implicit cost of ownership
B) irrational; the implicit cost of ownership
C) irrational; ignoring sunk costs
D) rational; considering sunk costs

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