Which of the following is a possible explanation for the reason that American steelmakers continued to invest in less efficient OH technology instead of newer more efficient BOF technology throughout the 1950s?
A)The replacement effect
B)Strategic intent
C)Strategic stretch
D)Efficiency effect
E)The sunk cost effect

Question

Quizplus · Accepted Answer

The sunk cost effect, which occurs when a company continues to invest in a technology or project even if it is no longer the most efficient or cost-effective option because they have already invested significant resources into it.

Which of the Following Is a Possible Explanation for the Reason