Ulrich Bought an Investment Property That He Intended to Rent

Multiple Choice

Ulrich bought an investment property that he intended to rent to tourists on the beach. After six months, he had had only one rental for far less than the cost he had hoped to charge. His wife encouraged him to sell the home, but he insisted that it will be profitable if they don't give up and keep trying to rent it. Ulrich's unwillingness to sell the home and cut his losses is an example of the ____ effect.

A) Escalation
B) persistence
C) endowment
D) sunk cost