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Why Isn't a Sunk Cost Part of the Opportunity Cost

Question 89

Multiple Choice

Why isn't a sunk cost part of the opportunity cost of a decision?


A) The expense would too often outweigh the benefits.
B) The chances of recouping a sunk cost are exceedingly small.
C) The money is gone, regardless of the decision made.
D) Sunk costs are psychological and thus not a part of economic costs.

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