Sadie Just Bought a New Karaoke Machine to Replace Her

question 88

Multiple Choice

Sadie just bought a new karaoke machine to replace her old one.Her old one works perfectly fine and would sell on Craigslist for $50.The fact that Sadie would not pay $50 for it,yet continues to let it sit in her closet unused is explained by:

• A) the implicit cost of ownership.
• B) the cost of admitting she likes karaoke.
• C) ignored sunk costs.
• D) irrationally considering sunk costs.