(Consider This) Susie purchased a nonrefundable ticket to a soccer match for $20.It will cost her $10 worth of gas and wear and tear to drive to the match and $5 to park her car.On the day of the match,Susie's boss offers her $100 to come to work instead.In considering what to do,which of the above would be considered a sunk cost?

A) The $20 ticket to the match.
B) The $10 cost to drive to the match.
C) The $5 cost to park at the stadium.
D) The $100 offered by Susie's boss.

Question

Hamza Bello · Accepted Answer

Final Answer : A, Explanation :  The $20 ticket to the match is considered a sunk cost because it has already been paid and cannot be refunded or recovered. The other costs, such as the gas and parking, are based on Susie's decision to attend the match and can be avoided if she chooses not to go. The $100 offered by her boss is not a cost but rather an opportunity cost, which means the potential gain that could be obtained by choosing an alternative option.

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