Susie purchased a nonrefundable ticket to a soccer match for $20. It will cost her $10 worth of gas and wear and tear to drive to the match and $5 to park her car. On the day of the match, Susie's boss offers her $100 to come to work instead. In considering what to do, which of the above would be considered a sunk cost?

Question

Quizplus · Accepted Answer

The $20 ticket to the match is a sunk cost because it is a cost that has already been incurred and cannot be recovered, regardless of whether Susie goes to the match or not. The costs to drive and park would only be incurred if she decides to go to the match, and the $100 offer is a potential income, not a cost.

Susie Purchased a Nonrefundable Ticket to a Soccer Match for $20