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.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 1PA

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