Tom’s Bistro’s soft opening didn’t go well, so he thinks it’s time to quit. Even though Ron recommends sticking it out, Tom is phased by the sunk cost fallacy; he loves quitting! April comes to the rescue and convinces him to at least try a full opening.
See more: behavioral, costs, entrepreneurship, firm decisions, production, sunk costs, variable costs
Ben is getting a little tired of Pawnee, but he’s only two stamps away from his “free” meatball sub. Unfortunately, his card is expired. He’s a bit sad about it, but those stamps are essentially a sunk cost. The card itself is a good example of ways that firms price discriminate and offer discounts to bulk shoppers.
See more: free lunch,NSTAFL, opportunity costs, price discrimination, second degree price discrimination, sunk costs
Economics of Parks & Recreation 