Question: Theoretically, sunk costs should be irrelevant to short-term decision-making, since these are costs that do not vary between alternatives. However, some psychological studies show that

Theoretically, sunk costs should be irrelevant to short-term decision-making, since these are costs that do not vary between alternatives. However, some psychological studies show that people are very reluctant to give up on projects once costs have been incurred. Can you suggest reasons why managers might not want to ignore sunk costs?

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