The Following Statements About the "Sunk Cost Fallacy" Are True

question 348

Multiple Choice

The following statements about the "sunk cost fallacy" are true, except

• A)it's the tendency to drag past costs into current marginal cost-benefit calculations.
• B)it comes from a desire to "get one's money's worth" out of a past expenditure.
• C)it refers to the fact that average fixed costs are not a major part of production costs.
• D)it could lead one to "throw good money after bad."

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Definitions:

Franz Colruyt

The founder of Colruyt Group, a Belgian multinational retail corporation, known for its commitment to cost efficiency and environmental sustainability.

International Operations Strategies

Strategic approaches adopted by businesses to manage and operate their physical and logistical operations across different countries, considering factors such as localization, global standardization, and supply chain management.

Local Responsiveness

The ability of a company or organization to meet the needs and preferences of local markets or environments.

Low Cost Reductions

refers to strategies implemented to decrease expenses in a business operation without significantly impacting product or service quality.