Sara spends $25 for an all-day ticket to an amusement park.After one ride,it begins to rain and she wishes she had never come.Since she has already paid for her ticket,she should stay at the amusement park until it closes or she has wasted her $25.

Question

Quizplus · Accepted Answer

The $25 is a sunk cost, meaning it's already spent and cannot be recovered. Staying at the amusement park solely to justify the expense, despite not enjoying it due to the rain, does not change the fact that the money is already spent. Decisions should be based on current and future benefits, not past costs.

Sara Spends $25 for an All-Day Ticket to an Amusement