You paid $25 for your ticket to the football game, only to see your favorite team losing 28-0 at the end of the first quarter. That $25 should now be regarded as a(n) __________ cost that economists say should be __________ in your decision on whether or not to stay at the game or leave.

Question

Quizplus · Accepted Answer

The $25 spent on the ticket is a sunk cost because it has already been paid and cannot be recovered, regardless of whether you stay for the rest of the game or leave. Economists recommend disregarding sunk costs when making decisions about future actions, as these costs should not influence the decision-making process.

You Paid $25 for Your Ticket to the Football Game