Final answer:
Not handling sunk costs properly can lead to inefficient decision-making.
Step-by-step explanation:
Sunk costs are costs that have already been incurred and cannot be recovered. Not handling sunk costs properly can lead to inefficient decision-making. When individuals or firms prioritize sunk costs in their decision-making, they may continue to invest resources in a project or venture that is no longer viable or profitable. This can result in wasted time, money, and effort.