Arnold Kim began blogging about Apple products during his fourth year of medical school. Kim's Website, MacRumors
com, became so successful that he decided to give up his medical career and work full time on his Website, despite the nearly $200,000 he had invested in his education. In making his decision, the $200,000 he spent on his education
A) should be considered since it is money he could have used to invest in his Website.
B) should be ignored only if Kim can earn more than $200,000 by running his Website.
C) should be considered since it is money he has spent and needs to recoup.
D) should be ignored since it represents a sunk cost.
D
You might also like to view...
Economic agents have an incentive to formulate expectations rationally
A) because ignoring information is usually costly. B) to increase prices. C) to reduce wages. D) to ensure that all expectations are realized.
When the economy is operating at an output rate below its full-employment level, the
a. actual level of unemployment will exceed the natural rate of unemployment. b. current rate of output will tend to persist into the future. c. strong demand for resources will cause resource prices to rise. d. actual unemployment rate will be less than the natural rate of unemployment.