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Chapter 2

Q. 2.6

Paul Wong is struggling to assemble his new home theater system. He has spent five hours thus far on the chore and estimates that at this rate, he will complete the assembly in two more hours. Joan Jimenez walks into the room and informs Paul that he is doing it the hard way. She describes a simpler approach that will take only one hour to disassemble the work that he has done over the last five hours and re-assemble the system completely. What should Paul do?

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Verified Solution

Paul should follow Joan’s advice because the remaining time to completion is less. The five hours of work that he has performed is a sunk cost.