A movie costs you and your friend $15 each.After one hour of watching the movie,you have struggled to stay awake while your friend has been on Facebook and is also bored with the movie.You suggest that you and your friend leave the movie and go to the park.Your friend responds by stating that he is not going to waste his $15 that was previously spent on the movie.Your friend is considering:

Question

Quizplus · Accepted Answer

Your friend is considering a sunk cost, which is a cost that has already been incurred and cannot be recovered. The money spent on the movie is a sunk cost that cannot be recovered by staying and continuing to watch the movie, so it should not affect the decision to leave and go to the park.

A Movie Costs You and Your Friend $15 Each