The tendency to continue investing in a project, despite mounting evidence that it is not succeeding, often comes about because people mistakenly let sunk costs affect decision making rather than weighing the value of further investment. This tendency is known as ________.
A)zero-profit condition
B)escalation of commitment
C)progress trap
D)zero-sum game

Question

Quizplus · Accepted Answer

The tendency described is known as "escalation of commitment." This refers to the phenomenon of continuing to invest in a failing project because of the sunk costs that have already been invested, rather than objectively considering the potential value of further investment. Options A, C, and D are not directly related to this phenomenon.

The Tendency to Continue Investing in a Project, Despite Mounting