Terrance's cell phone carrier would charge him $250 to cancel his current contract.If Terrance wants to change cell phone carriers,the $250 he would have to pay is considered a ________ cost.

Question

Quizplus · Accepted Answer

The cost of $250 that Terrance would have to pay to cancel his current contract is a switching cost. Switching costs are the costs that a consumer incurs when changing from one product or service to another, such as the cost of canceling a contract.

Terrance's Cell Phone Carrier Would Charge Him $250 to Cancel