Les Just Bought a Megaphone of Root Beer

question 74

Multiple Choice

Les just bought a megaphone of root beer. As he drinks from the giant cup, he eventually becomes full. One of his friend's comments, "If you don't stop drinking that stuff, you will get sick." Les replies, "Hey, I bought it, and I am not going to waste one drop of it." Les's behavior best illustrates ________.

• A) loss aversion
• B) hyperopia
• C) risk positioning
• D) the sunk-cost fallacy

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Definitions:

Exchange Rate

The ratio at which one nation’s currency can be exchanged for another nation’s currency.