Your friend purchased a non-refundable ticket to a popular Broadway play for Friday night.Yesterday she was invited to spend Friday on the lake with a group of sorority sisters.Her only cost will be for personal items such as lunch.The lake is two hours away from her apartment and the play is another hour in the opposite direction.She knows that if she goes to the lake, she will not get back in time to attend the play.Which of the following is not a relevant cost in making her decision on whether to go to the play or to the lake?
A)The price of the ticket to the play
B)The price of eating out at the lake
C)The price of renting an umbrella at the lake
D)The price of driving to the play

Question

Quizplus · Accepted Answer

The price of the ticket to the play is a sunk cost, meaning it has already been incurred and cannot be recovered, so it is not relevant to the decision-making process about future activities.

Your Friend Purchased a Non-Refundable Ticket to a Popular Broadway