Ginger bought a phone that came with a $10 rebate. Ginger should fill out and mail in the rebate form if:
A)the opportunity cost of the time and trouble of sending in the rebate form is less than $10.
B)the opportunity cost of the time and trouble of sending in the rebate form is more than $10.
C)she would have bought the phone without the rebate, and so sending in the rebate form involves no opportunity cost.
D)Ginger's surplus from purchasing the phone was less than $10.

Question

Quizplus · Accepted Answer

Ginger should disregard the sunk cost of the phone and consider only the marginal benefit of receiving the rebate with the marginal cost of sending in the form.

Ginger Bought a Phone That Came with a $10 Rebate