Google Aplir Student Question emine Whether Each Some Tools of Economic Analysis

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Google Aplir Student Question emine Whether Each Some Tools of Economic Analysis Graded Assignment | Read Chapter 21 Back to Assignment Due Monday 12.11.17 at 0145 AM Attempts Keep the Highest: 3. Sunk costs and decision making Manuel has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontransferable ticket. Now Poomima, whom Manel has wanted to date for a long time, asks him to a concert. Manuel would prefer to go to the concert with Poornima and forgo the play, but he doesn want to waste the $$50 he spent on the play ticket. From the perspective of an economist, 4 Manuel deoides to go to the concert with Poornima, what has he just done? O Made a choics that was not optimal O correctly ignored a sunk cost O Incorrectly allowed a sunk ooit to influence his decion

Explanation / Answer

Ans:

Correctly ignored a sunk cost

sunk cost are the cost which are already incurred and cannot be recovered. These cost are already spent and permanently lost and hence not relevant for decision making.In this case Manuel decides to go to the concert and he correctly ignored a sunk cost in decision making.

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