Final answer:
The misconception that momentum is lost can be explained by the Conservation of Momentum, which must take into account external forces like friction that can change the system's total momentum.
Step-by-step explanation:
The concept that explains the misconception that momentum is lost when the 10kg clay ball sticks to a stationary block and moves together with a velocity of 8 m/s is Conservation of Momentum. The students have failed to consider that the total system momentum before and after the collision should be the same in the absence of external forces. When external forces like friction are present, it may appear that momentum is not conserved. However, what actually happens is that the external force exerts an impulse on the system, changing its total momentum. It's important to consider both the clay ball and the block as a single system when applying the conservation of momentum principle.