Keith Just Got the Newest IPhone for His Birthday

question 64

Multiple Choice

Keith just got the newest iPhone for his birthday. He quickly transfers his data to the new phone and throws his older generation iPhone in a drawer. The old iPhone sits in the drawer unused, even though Keith could have sold it to a friend for $100. Economists would say this behavior is _____ and would use the concept of _____ to explain his choice.

• A)rational; the implicit cost of ownership bias
• B)irrational; the implicit cost of ownership bias
• C)irrational; ignoring sunk costs
• D)rational; considering sunk costs

---

Definitions:

Venture Success

The achievement of predefined objectives and goals by a new business or startup, often measured in terms of profitability, scalability, or market share.

Lead Entrepreneur

The primary individual responsible for setting the vision, direction, and strategy of a startup or entrepreneurship venture, often leading the effort to achieve its objectives.

Financial Support

Funding provided to businesses, individuals, or nations to aid in achieving economic goals or covering expenses.

Product Uniqueness

The distinct characteristics that make a product stand out from its competitors in the market, often leading to competitive advantage.