You have spent $1000 building a hot-dog stand based on estimates of sales of $2000. the hot-dog stand is nearly completed, but now you estimate total sales o be only $800. you can complete the hot-dog stand for another $300. Should you complete the hot-dog stand? (Assume that the hot dogs are costless to you.)

a. yes

b. no

c. there is not enough information

correct answer is a. yes

Explanation:

given data

spent = $1000

estimates of sales = $2000

total sales = $800

hot-dog stand for another  = $300

solution

we already spent here  $1000 and assuming it is not recover

so If you do nothing it will be sunk cost in future

and

when we spend $300 another and earn $800

so we make here = $1000 + $300 - $800 = $500

so we can lose $500

so here lose $500 is better than lose $1000

so correct answer is a. yes

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this

i might look it up later.