25. When managing change and making decisions, it is important to avoid cognitive biases. Which of the following statements does best match the psychological phenomenon sunk costs?

People do not like extremes and will tend to take the middle option when presented with three options.

It is natural to want to defend the dominant industry logic against a conflicting new business model and to avoid conflicts.

The board of directors will often believe ridiculous forecasts if they have heard them over and over again.

It is much easier to abandon US $200000 project than a US $2 million one.