You are to receive five gold coins from your great uncle as an incentive to study hard.The coins were originally purchased in 1982.Your great uncle will deliver the coins the week after finals (assuming your grades are "acceptable").The amount your great uncle paid for the coins is a(n):
A)opportunity cost.
B)indirect cost.
C)sunk cost.
D)overhead cost.

Question

Quizplus · Accepted Answer

The cost your great uncle paid for the coins in 1982 is a sunk cost because it is a past cost that cannot be recovered or changed. It is not an opportunity cost, as it was a tangible expense, nor is it an indirect or overhead cost, as those are expenses incurred in the course of production or operation.

You Are to Receive Five Gold Coins from Your Great