Joe Pre-Orders a Non-Refundable Movie Ticket

question 22

Multiple Choice

Joe pre-orders a non-refundable movie ticket.He then reads a number of reviews of the movie in question that make him realize that he will not enjoy it.He goes to see it anyway,rationalizing that otherwise his money will have been wasted.Is Joe succumbing to the Sunk Cost Fallacy,and why?

• A)Yes,since he invested a valuable asset,his time,in a project based on its previous costs.
• B)No,because the cost of the movie was not recoverable and would have been lost whatever action he took.
• C)No,because going to see the movie means that the product of his initial investment was realized as originally planned.
• D)No,because he incurred no further costs by going to see the movie.

---

Definitions:

Large Tandem Truck

A truck configuration involving two sets of axles at the rear for carrying more weight, commonly used for hauling goods or as part of construction machinery.

Deliberately Destroyed

Intentionally causing something to be ruined or rendered unusable.

Non-Performance

Failure to fulfill a contractual duty or obligation within the agreed timeframe or specifications.

Substituted Agreement

An agreement that replaces a previous contract, often to revise terms or settle a dispute.