Tony notes that an electronics store is offering a flat $20 off all prices in the store. Tony reasons that if he wants to buy something with a price of $50, then it is a good offer, but if he wants to buy something with a price of $500, then it is not a g
Tony notes that an electronics store is offering a flat $20 off all prices in the store. Tony reasons that if he wants to buy something with a price of $50, then it is a good offer, but if he wants to buy something with a price of $500, then it is not a good offer. This is an example of:
A.the proper application of the Cost-Benefit Principle.
B.inconsistent reasoning; saving $20 is saving $20.
C.rational choice because saving 40% is better than saving 4%.
D.inconsistent reasoning because prices are sunk costs.
正确答案:inconsistent reasoning; saving $20 is saving $20.