Commitment to Prior Investments Escalates and Makes It Harder to Abandon

question 33

Multiple Choice

Commitment to prior investments escalates and makes it harder to abandon prior investments even if it may not make rational sense is called __________ .

• A) cost abandonment fallacy
• B) sunk cost fallacy
• C) commitment cost fallacy
• D) committed cost fallacy

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Definitions:

Prenatal Environment

The prenatal environment encompasses all of the physical, chemical, and biological factors that affect a developing fetus within the womb.

Fertilized Eggs

Ova that have been penetrated by sperm, initiating the process of development into an embryo and, subsequently, into a fetus.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and fear.

Emotionally Upset

A state of distress or disturbance in one's emotional equilibrium, often resulting from a specific event or situation.