Question

According to sunk cost fallacy, a neoclassical economists fail to predict real life behavior. b) economic actors are loss ave
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Answer #1

d is correct

Reason

Neoclassical economics do not consider sunk cost in part of the equation and consider economic agents as rational, but in real life economic agents do consider sunk cost while making decisions. Thus, they are loss averse and this leads to inefficient output.

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