What Is a Sunk Cost?
OpenStax: costs already spent that cannot be recovered; fixed costs are often sunk.
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1.What is a sunk cost?
OpenStax: costs already spent that cannot be recovered; fixed costs are often sunk.
2.How does a sunk cost differ from an opportunity cost?
An opportunity cost is the value of the best option you give up.
3.Marge's 12 ticket cannot be refunded. What does the price change about whether she stays?
The 12 sits in both columns; what is left is 90 minutes of this movie or of something better; staying can still be right if she wants to see the ending.
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Sources (5)
- OpenStax, Principles of Economics 3e, Abschnitt 7.3 Costs in the Short Run
- Bornstein, B. H.
- UK Parliament, Hansard, Commons, 11.12.1972: Concorde Aircraft Bill (Rede Tony Benn)
- Smithsonian National Air and Space Museum: What Happened to the Concordes?
- Eigene Berechnung (synthetische Rechenbeispiele)
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