multiple choice question\napex enterprises spent a large amount of money to customize a pumping system it…

multiple choice question\napex enterprises spent a large amount of money to customize a pumping system it bought many years ago. a supplier is now offering a new pumping system that will save the company money in the long term. however, apex decides to keep the older system because it has already spent so much money on the older system. what type of bias is this an example of?\n\navailability\nrepresentative\nsunk - cost\nconfirmation

multiple choice question\napex enterprises spent a large amount of money to customize a pumping system it bought many years ago. a supplier is now offering a new pumping system that will save the company money in the long term. however, apex decides to keep the older system because it has already spent so much money on the older system. what type of bias is this an example of?\n\navailability\nrepresentative\nsunk - cost\nconfirmation

Answer

Brief Explanations:

Apex is influenced by the money already spent (sunk - cost) and bases its decision on that rather than future - cost savings. Sunk - cost bias occurs when past non - recoverable costs influence current decisions.

Answer:

C. Sunk - cost