Question

You go to the movie theater to see the latest release by your favorite actor. You quickly realize the movie is not very good, but instead of walking out, you stay to watch the rest of the movie, figuring that you've already spent $9.50 for a movie ticket and $6 for popcorn. This is an example of the _______ bias.

a. anchoring and adjustmentb. representativec. sunk-costd. confirmation

Answer 1

Sunk cost

Step-by-step explanation:

The sunk cost is the cost already incurred that will not be recovered in the future. Plus, it's also called past expenses.

This expense is not considered at the time when the decisions are taking and it should be neglected as it is not relevant at the time of the decision-making process

In the given scenario since the amount already spent for a movie ticket and for popcorn and we know that we cannot recover now so it would be termed as a sunk cost