In early July, Colin Marks purchased a $70 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was expected to cost approximately $22, and Marks would probably spend another $15 for a souvenir program and food. It is now December 14. The Shippers were having a miserable season and the temperature was expected to peak at 5 degrees on game day. Marks therefore decided to skip the game and took his wife to the movies, with tickets and dinner costing $50. The sunk cost associated with this decision situation is:
A) $20.
B) $50.
C) $70.
D) $107.
E) None of the answers is correct.

Question

Quizplus · Accepted Answer

The sunk cost is $70, which is the amount spent on the game ticket that cannot be recovered, regardless of Marks' decision to attend the game or not.

In Early July, Colin Marks Purchased a $70 Ticket to the December