Suppose you have purchased a non-refundable plane ticket and, at the last moment, you cannot take the trip.You can, however, sell the ticket.If you paid $700 for the ticket, the cost of sending the ticket to someone through overnight mail is $20, and you spend $10 on a courier to get the ticket to the post office for overnight delivery, what is the minimum you should accept for the ticket?
A)$700 because that is what the ticket cost.
B)$720 because that is the cost of the ticket and of getting it to the buyer.
C)$730 because that is the total cost of the ticket and getting it to the buyer.
D)More than $730, so that you can make a profit.
E)$30 because the $700 is a sunk cost.

Question

Quizplus · Accepted Answer

The $700 is a sunk cost, meaning it cannot be recovered. The minimum you should accept is $30 to cover the additional costs of sending the ticket.

Suppose You Have Purchased a Non-Refundable Plane Ticket And, at the Last