Suppose you have tickets to a hockey game.The tickets cannot be refunded or resold.In deciding whether or not to attend the game, the cost of the tickets is
A) a marginal benefit of choosing to attend.
B) a marginal cost of choosing to attend.
C) a sunk cost.
D) an opportunity cost of missing the game.
E) an incentive.

Question

Quizplus · Accepted Answer

The cost of the tickets is a sunk cost because once you have purchased the tickets, the money cannot be recovered. It is irrelevant to the decision of whether or not to attend the game. Therefore, the best choice is to ignore the cost of the tickets and make the decision based on other factors such as the enjoyment of attending the game or other opportunity costs involved in not attending the game.

Suppose You Have Tickets to a Hockey Game