Suppose you have purchased a nonrefundable plane ticket and,at the last moment,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 Nonrefundable Plane Ticket And,at the Last