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Rachael Would Like to Shop Around Comprehensively for Her Car

question 44

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Rachael would like to shop around comprehensively for her car insurance this year. However she is overwhelmed at work, so instead of searching more extensively she simply does a quick check on three well-known options and chooses one. According to Herbert Simon, this is known as a ________ solution.


Definitions:

Sunk Costs

Expenses that have already been incurred and cannot be recovered.

Project Undertaken

Refers to a specific initiative or task that has been started or committed to, usually within a business or professional context.

Sunk Costs

Costs that have been spent and are non-recoverable.

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