Which statement best describes the sunk cost fallacy and one practical mitigation?

Which statement best describes the sunk cost fallacy and one practical mitigation?

• A. The tendency to continue an endeavor due to prior investments, even when it no longer makes sense; mitigation includes seeking diverse perspectives and using structured decision processes.
• B. The tendency to ignore past investments and pivot quickly.
• C. The tendency to always choose the option with the lowest upfront cost.
• D. The tendency to overvalue future benefits over present costs.

Answer: (A)