Sunk costs are not part of opportunity costs.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, and therefore should not be considered when making future economic decisions. Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. Since sunk costs cannot be recovered or changed, they do not influence the calculation of opportunity costs, which are concerned with future outcomes.

Sunk Costs Are Not Part of Opportunity Costs