I wanted to withdraw some money a few days ago and so I reached my bank's branch. There I saw a long queue and estimated that I would have to wait around 15-20 minutes in the queue for my turn to come. I wondered if I should return and instead withdraw the same amount from an ATM.
Just then the MBA learning - sunk costs should never be considered in managerial decision-making - occured to me and I decided to stay at the branch and wait in the queue. Why? Because going to the ATM and withdrawing money from it would've cost me about 20-25 minutes. Staying in the queue would've cost me 15-20 minutes. The better decision is obvious, since the time I have already spent to reach the bank branch is now sunk and thus shouldn't affect my subsequent choice.
Just then the MBA learning - sunk costs should never be considered in managerial decision-making - occured to me and I decided to stay at the branch and wait in the queue. Why? Because going to the ATM and withdrawing money from it would've cost me about 20-25 minutes. Staying in the queue would've cost me 15-20 minutes. The better decision is obvious, since the time I have already spent to reach the bank branch is now sunk and thus shouldn't affect my subsequent choice.
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