While Violating the Sunk Cost Principle, People Often

Multiple Choice

While violating the sunk cost principle, people often

A) attribute random fluctuations in the stock market to predictable causes, thereby increasing the likelihood that self-fulfilling prophecies will occur.
B) feel entrapped by their prior commitments to some failing course of action but continue to pursue it to justify their prior decisions.
C) wait too long before making their investment decisions, thereby passing up the opportunity to buy stocks when they are least expensive.
D) base their decisions purely on economic rules and ignore the psychological implications of their actions.