A person with loss aversion:A) has a hard time recognizing losing investments and moving on.B) is likely to maximize total revenue rather than profit.C) is unlikely to ignore sunk costs.D) is more likely to use a credit card than to pay cash.

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faith colvin · Accepted Answer

Final Answer : A, Explanation :  Loss aversion refers to the tendency for people to feel loss more strongly than gain. As a result, someone with loss aversion may have a hard time recognizing losing investments and cutting their losses since they feel the loss more strongly than they would feel the gain from a profitable investment.

A person with loss aversion:

A) has a hard time recognizing losing investments and moving on.
B) is likely to maximize total revenue rather than profit.
C) is unlikely to ignore sunk costs.
D) is more likely to use a credit card than to pay cash.

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