3. Sunk costs and decision making Charles has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontransferable ticket. Now Dina, whom Charles has wanted to date for a long time, asks him to a party. Charles would prefer to go to the party with Dina and forgo the play, but he doesn't want to waste the $50 he spent on the play ticket. From the perspective of an economist, if Charles decides to go to the party with Dina, what has he just done? O Correctly ignored a sunk cost O Made a choice that was not optimal O Incorrectly allowed a sunk cost to influence his decision

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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3. Sunk costs and decision making
Charles has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontransferable ticket. Now Dina, whom Charles has
wanted to date for a long time, asks him to a party. Charles would prefer to go to the party with Dina and forgo the play, but he doesn't want to waste
the $50 he spent on the play ticket.
From the perspective of an economist, if Charles decides to go to the party with Dina, what has he just done?
O Correctly ignored a sunk cost
O Made a choice that was not optimal
O Incorrectly allowed a sunk cost to influence his decision
Transcribed Image Text:3. Sunk costs and decision making Charles has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontransferable ticket. Now Dina, whom Charles has wanted to date for a long time, asks him to a party. Charles would prefer to go to the party with Dina and forgo the play, but he doesn't want to waste the $50 he spent on the play ticket. From the perspective of an economist, if Charles decides to go to the party with Dina, what has he just done? O Correctly ignored a sunk cost O Made a choice that was not optimal O Incorrectly allowed a sunk cost to influence his decision
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