The city of Tustin,California,has spent $10 million on a project to build a new community college.It will cost the city $40 million to finish the project.When making the decision to continue the project,the city's chief economist tells the city council to ignore the $10 million because

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The $10 million is a sunk cost, meaning it is a cost that has already been incurred and cannot be recovered. Therefore it should not be considered in the decision-making process of whether to continue or stop the project.

The City of Tustin,California,has Spent $10 Million on a Project