What is a "sunk costs" argument? How do you defend against it?

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What is a "sunk costs" argument? How do you defend against it?

Sunk Costs:

Sunk costs are expenses that have been incurred in the past, which cannot be recovered in the future. Standard economic theories argue that sunk costs should not affect future decision makings.

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The sunk costs argument suggests that when making decisions, one should not consider sunk costs. This is because sunk costs are expenses that have...

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Sunk Costs: Definition & Examples

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Chapter 31 / Lesson 8
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Understand the sunk cost definition. Learn the meaning of sunk cost and sunk cost trap with the help of the sunk cost examples and sunk cost fallacy examples.


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