_______ is the phenomenon where people justify increased investment on the cumulative prior investment, despite new evidence suggesting that the cost, starting today, of continuing the decision outweighs the expected benefit.

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17-09-2019
Business

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_______ is the phenomenon where people justify increased investment on the cumulative prior investment, despite new evidence suggesting that the cost, starting today, of continuing the decision outweighs the expected benefit.

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adeambrossi adeambrossi · Answer 1 · 2019-09-20T22:32:55+02:00

Answer:

Sunk cost fallacy.

Explanation:

Sunk costs - are costs that have been incurred as a result of past decisions. Now are unrecoverable.

A trap which enables a investor to invest more in the sunken costs to earn profit.

Are cost incurred in the past tha cannot be changed.

Sunk cost fallacy - considering sunk costs when making new decisions at the margin. Can lead to using out of date facilities and incurring large opportunity costs.

Is the continued investment in something no longer desired to reconcile the loss of the initial investment.

_______ is the phenomenon where people justify increased investment on the cumulative prior​ investment, despite new evidence suggesting that the​ cost, starting​ today, of continuing the decision outweighs the expected benefit.

Respuesta :

Otras preguntas

_______ is the phenomenon where people justify increased investment on the cumulative prior investment, despite new evidence suggesting that the cost, starting today, of continuing the decision outweighs the expected benefit.