Jonathan Mendez is deciding whether to study for his economics exam at a café or go to a concert with friends tonight. The cost of the concert ticket that he purchased yesterday is ____ in his opportunity cost and represents a _____ cost.

Question

Quizplus · Accepted Answer

The cost of the concert ticket is not included in his opportunity cost because it is a sunk cost, meaning it has already been incurred and cannot be recovered, regardless of his decision.

Jonathan Mendez Is Deciding Whether to Study for His Economics