Your brother is trying to sell his bicycle for $200.He refuses to lose more than $50 on the sale because it originally cost him $229 when he purchased it two years ago.Which of the following would be his sunk cost?
A)$50.
B)$200.
C)$229.
D)$179.
E)None of the answers is correct.

Question

Quizplus · Accepted Answer

The sunk cost in this scenario is the original cost of the bike, which was $229. Sunk cost refers to the cost that has already been incurred and cannot be recovered. It is not relevant in making present or future decisions, such as setting a selling price for the bicycle. Therefore, choice C is the correct answer, while choices A, B, D, and E are incorrect.

Your Brother Is Trying to Sell His Bicycle for $200