Brittany is considering opening a clothing store. She is concerned because she spent $60,000 earning a degree in biology and will not be using it. The $60,000 is an example of a _____ cost.

Question

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The $60,000 spent on a biology degree that will not be used in opening a clothing store is considered a sunk cost because it is a past expense that cannot be recovered, regardless of future outcomes.

Brittany Is Considering Opening a Clothing Store