People will consistently sit through terrible movies at the theater instead of leavingearly. This behavior makes no sense because it implies people are:O ignoring sunk costs, which is irrational.focusing on sunk costs, instead of thinking at the margin.thinking at the margin, instead of focusing on sunk costs.not thinking at the margin, which is rational.

Sunk cost is the cost which cannot be recovered as ticket cost of the movie in the case. Because if…

People will consistently sit through terrible movies at the theater instead of leaving early. This behavior makes no sense because it implies people are: © ignoring sunk costs, which is irrational. focusing on sunk costs, instead of thinking at the margin. thinking at the margin, instead of focusing on sunk costs. not thinking at the margin, which is rational.

People will consistently sit through terrible movies at the theater instead of leaving early. This behavior makes no sense because it implies people are: © ignoring sunk costs, which is irrational. focusing on sunk costs, instead of thinking at the margin. thinking at the margin, instead of focusing on sunk costs. not thinking at the margin, which is rational.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 1DQ

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