Which one of the following decisions most clearly reflects a good economic understanding of how to make decisions in the presence of sunk costs? O While playing poker you have already bet $100, and upon seeing the new cards that you were dealt, even though you know that there is no way you can win, you continue to bet more since you have already bet $100 and there is no way to get it back. O After putting in weeks of effort into a class you see that there is no way you will pass the course, so you drop the class and plan to take it again next semester. O When talking to her mother about her boyfriend's recent marriage proposal, Jennifer says "I'm not really optimistic about my future with him, but we have been together so long and spent so much time together, I might as well marry him". Your friend is having a huge party this Saturday that you really want to go to more than the concert for which you have already bought tickets. So, even though you want to go to the party more, you decide to go ahead to the concert since you have already paid for the tickets and it is too late to sell them.

Which one of the following decisions most clearly reflects a good economic understanding of how to make decisions in the presence of sunk costs? O While playing poker you have already bet $100, and upon seeing the new cards that you were dealt, even though you know that there is no way you can win, you continue to bet more since you have already bet $100 and there is no way to get it back. O After putting in weeks of effort into a class you see that there is no way you will pass the course, so you drop the class and plan to take it again next semester. O When talking to her mother about her boyfriend's recent marriage proposal, Jennifer says "I'm not really optimistic about my future with him, but we have been together so long and spent so much time together, I might as well marry him". Your friend is having a huge party this Saturday that you really want to go to more than the concert for which you have already bought tickets. So, even though you want to go to the party more, you decide to go ahead to the concert since you have already paid for the tickets and it is too late to sell them.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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