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Jason Spends All Afternoon Baking a Cake

Question 46

Multiple Choice

Jason spends all afternoon baking a cake.When it comes out of the oven,it's burnt and sunken in the middle,and Jason considers whether he should throw it away or not.If Jason were rational,he would compare the ______________,which is ______________,to the benefits of eating a burnt,sunken cake.


A) sunk cost; the time and ingredients spent making the cake
B) opportunity cost; the value of the time spent and utility from eating or doing something else
C) total cost; the value of the time spent making the cake, the cost of ingredients, and value of the time that could be spent doing something other than eating the cake
D) benefit of throwing the cake away; the value of not having to eat burnt cake

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