Larry has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. now megan, whom larry has wanted to date for a long time, asks him to a party. larry would prefer to go to the party with megan and forgo the opera, but he doesn't want to waste the $100 he spent on the opera ticket. from the perspective of an economist, if larry decides to go to the party with megan, what has he just done? incorrectly allowed a sunk cost to influence his decision made a choice that was not optimal correctly ignored a sunk cost

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.