The story in the text about playing tennis outside even though you paid for an inside court illustrates which of 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 these are implied by the tennis court story.

Question

Quizplus · Accepted Answer

The story illustrates the phenomenon of sunk cost fallacy, where people often feel psychologically attached to sunk costs and consider them when making decisions, even if they are irrelevant to the decision at hand. The decision to play tennis outside despite paying for an inside court is an example of not ignoring sunk costs in decision-making. This matches option A. The story does not support options B or C, which present contrasting views.

The Story in the Text About Playing Tennis Outside Even