People consistently consider sunk costs when weighing the trade-offs involved in a decision because:
A. they are rational.
B. they think at the margin.
C. they find it hard to accept their losses.
D. they are utility-maximizers.
Answer: C
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A major controversy involving the banking industry in its early years was
A) whether banks should both accept deposits and make loans or whether these functions should be separated into different institutions. B) whether the federal government or the states should charter banks. C) what percent of deposits banks should hold as fractional reserves. D) whether banks should be allowed to issue their own bank notes.
Assume that an economy experiences both positive population growth and technological progress. In this economy, which of the following is constant when balanced growth is achieved?
A) I B) S C) Y/N D) all of the above E) none of the above