An Example of a Firm with High Sunk Costs Is

question 80

Multiple Choice

An example of a firm with high sunk costs is

• A) the local electric company
• B) United-Continental Airlines
• C) Nike
• D) Costco
• E) all of these firms have high sunk costs

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Definitions:

Confirmation Error

A cognitive bias that involves favoring information that confirms pre-existing beliefs or values, while disregarding evidence that contradicts them.

Escalating Commitment

The phenomenon where people increase their investment in a decision despite new evidence suggesting that the decision was wrong.

Framing Error

A cognitive bias where information is presented or perceived in such a way that it leads to incorrect conclusions or decisions.

Lack-of-participation Error

A bias or error in decision-making that occurs when not all stakeholders or team members are involved or engaged in the process.