Ramiro has been an accounting major for three years, but he is not doing very well in his courses. he has, however, done very well in his law courses, but he doesn't want to change his major to law because he has already spent three years as an accounting major. he does not want to feel like he wasted those three years. ramiro is subject to: a. altruism. b. a framing bias. c. overconfidence. d. a sunk cost fallacy.

Question

Business

Ellis Jensen

28 October, 04:33

Ramiro has been an accounting major for three years, but he is not doing very well in his courses. he has, however, done very well in his law courses, but he doesn't want to change his major to law because he has already spent three years as an accounting major. he does not want to feel like he wasted those three years. ramiro is subject to: a. altruism. b. a framing bias. c. overconfidence. d. a sunk cost fallacy.

+2

Answers (1)

Know the Answer?

Milton Mclean · Answer 1

Sunk cost fallacy

Explanation:

Sunk cost in economics is the cost that is considered to have been incurred and not recoverable by the individual. On the other hand perceived cost are those that the individual anticipates in the future and can take action to avoid.

Ramiro has already invested 3 years in accounting, and though he is doing better in law he does not want to change his major to law because he does not want to waste the 3 years spent as an accounting major.

This is a sunk cost fallacy.