Health clubs typically experience an increase in one-year memberships in January, but many new customers cancel their memberships before the end of the year. Which of the following is the best explanation for this behavior?
A) Some people fail to treat their membership fees as sunk costs.
B) Some people are overly optimistic about their future behavior.
C) Some members receive utility from activities they believe are popular.
D) Some health club members suffer minor injuries that prevent them from working out.
B
Economics
You might also like to view...
If real interest rates are equal in two countries, then the nominal interest differential on their currencies will equal
A) the expected inflation differential. B) the risk premium. C) the forward premium or discount. D) Both A and C.
Economics
The U.S. antitrust laws
A) aid monopolies in their quest to dominate the market for a good or service. B) are outdated and rarely used anymore. C) promote competition. D) are administered by the Department of Commerce.
Economics