The story in the text at the beginning of this chapter about playing tennis outside even though you paid for an inside court.This story illustrates which if the following?
A)Psychologically, people often do not treat sunk cost as irrelevant to a decision
B)Rational choice analysis is what comes naturally to most people
C)People will make efficient decisions without knowing what they are doing
D)All of the above are implied by the tennis court story

Question

Quizplus · Accepted Answer

The story about playing tennis outside despite paying for an indoor court demonstrates how people often have difficulty letting go of "sunk costs" (in this case, the money paid for the indoor court) and instead continue to invest time and effort into the decision. This aligns with option A, which states that people often do not treat sunk cost as irrelevant to a decision. Options B and C are not supported by the story.

The Story in the Text at the Beginning of This