Sunk costs and decision making

Assignment Help Business Management

Reference no: EM131011808

Alyssa has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Tim, whom Alyssa has wanted to date for a long time, asks her to a party. Alyssa would prefer to go to the party with Tim and forgo the movie, but she doesn't want to waste the $10 she spent on the movie ticket. From the perspective of an economist, if Alyssa decides to go to the movie, what has she just done?

Incorrectly allowed a sunk cost to influence her decision
Correctly ignored a sunk cost
Made an optimal choice

Reference no: EM131011808

Questions Cloud

What ethical dilemmas do marketing professionals face : What ethical dilemmas do marketing professionals face in gathering information on customer bases through smartphones and social media

Predicting success of trainees : What distinguishes managerial trainees who eventually become executives from those who, after expensive training, don't succeed and leave the company?

Reflect upon the author opinion : Reflect upon the author's opinion.Synthesize a response to the following question: Do you agree with the author that the U.S. Dollar will remain the global currency?

Summarize the major reform principles of any three titles : How do unethical accounting practices affect internal and external stakeholders? Summarize the major reform principles of any three titles

Sunk costs and decision making : Alyssa has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Tim, whom Alyssa has wanted to date for a long time, asks her to a party. Alyssa would prefer to go to the party with Tim and forg..

Why is the technological environment : Why is the technological environment such a dramatic force in todys market

Logan products computes its predetermined overhead rate : Logan Products computes its predetermined overhead rate annually on the basis of direct labor-hours.

Simplest and least expensive option for business ownership : Simplest and least expensive option for business ownership. Business income and costs are reported on the owner's personal income tax return so less paperwork and easier tax accounting for the sole prop. The sole prop. is also the sole decision maker..

Strategic planning for new products is fed : Strategic planning for new products is fed by which of the following main streams of activity?(Points : 5) Distribution channel planning Ongoing corporate planning

User Account

All Pages