What is the ‘sunk cost fallacy’?

A. The tendency to make decisions based solely on potential losses
B. The belief that one should continue an endeavor once an investment has been made
C. The phenomenon of overestimating future outcomes
D. A cognitive bias in financial decisions

Answer: The belief that one should continue an endeavor once an investment has been made


Additional Information: The sunk cost fallacy is a bias where individuals continue an endeavor due to previously invested resources, even if it is no longer beneficial.


Subjects: Psychology