Question

Bob does not think he can complete the current project​ he's working on with the resources he has available. The product may also become obsolete by the time it is released due to scheduling delays.​ However, he presses forward because his department has already spent​ $100,000 and 6 months working on the project. This is an example of the​ ________.

Answer 1

Bob does not think he can complete the current project​ he's working on with the resources he has available. The product may also become obsolete by the time it is released due to scheduling delays.​ However, he presses forward because his department has already spent​ $100,000 and 6 months working on the project. This is an example of the​ . sunk cost fallacy

Step-by-step explanation:

Bob's situation, where he continues to work on a project despite recognizing that it may not succeed due to past investment of time and resources, is an example of the sunk cost fallacy. This is a common issue where both individuals and firms have trouble letting go of a project because they cannot ignore the resources they have already invested into it, even if those resources are irrecoverable and should not impact future decisions.

The best course of action would be to make decisions based on potential future outcomes rather than past expenditures, but the sunk cost fallacy often makes this difficult.