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Why Is a Sunk Cost Not Part of the Opportunity

Question 98

Multiple Choice

Why is a sunk cost not part of the opportunity cost of a decision?


A) Because the expense would too often outweigh the benefits.
B) Because the chances of recouping it are infinitesimally small.
C) Because the money is gone, regardless of the decision made.
D) Sunk costs are a part of the opportunity cost of a decision.

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