In early July, Damon Rutton purchased a $70 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was expected to cost approximately $22, and Rutton would probably spend another $15 for a souvenir program and food. It is now December 14. The Shippers were having a miserable season and the temperature was expected to peak at 5 degrees on game day. Damon is thinking about skipping the game and taking his wife to the movies and dinner, at a cost of $50. The amount of sunk cost that should influence Damon's decision to spend some time with his wife is:

Question

Quizplus · Accepted Answer

Sunk cost is a cost that has already been incurred and cannot be recovered. In this case, the sunk cost is the $70 ticket. The other costs (parking, program, food) are not sunk costs because they have not yet been incurred. Therefore, the amount of sunk cost that should influence Damon's decision is $70.

In Early July, Damon Rutton Purchased a $70 Ticket to the December