In early July, Mike Gottfried purchased a $70 ticket to the December 15 game of the Chicago Titans. (The Titans belong to the Midwest Football League and play their games outdoors on the shore of Lake Michigan.) Parking for the game was expected to cost approximately $22, and Gottfried would probably spend another $15 for a souvenir program and food. It is now December 14. The Titans were having a miserable season and the temperature was expected to peak at 5 degrees on game day. Mike 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 other answers are correct.

Question

Quizplus · Accepted Answer

The sunk cost is the $70 ticket price, as it is a past expense that cannot be recovered regardless of the decision made.

In Early July, Mike Gottfried Purchased a $70 Ticket to the December