Joe pre-orders a non-refundable movie ticket.He then reads a number of reviews of the movie in question that make him realize that he will not enjoy it.He goes to see it anyway,rationalizing that otherwise his money will have been wasted.Is Joe succumbing to the Sunk Cost Fallacy,and why?
A) Yes,since he invested a valuable asset,his time,in a project based on its previous costs.
B) No,because the cost of the movie was not recoverable and would have been lost whatever action he took.
C) No,because going to see the movie means that the product of his initial investment was realized as originally planned.
D) No,because he incurred no further costs by going to see the movie.
E) No,because he won't know for sure if he enjoys the movie until he sees it.
Correct Answer:
Verified
Q64: Use the table for the question(s)below.
Q65: Use the table for the question(s)below.
Q66: Luther Industries has outstanding tax loss carryforwards
Q67: A restaurant invests $240,000 in a new
Q68: A bakery invests $30,000 in a light
Q70: If a business owner is using the
Q71: A textile company invests $12 million in
Q73: A machine is purchased for $500,000 and
Q74: A textile company invests $12 million in
Q94: What are project externalities?
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents