In early September, Merina Holden purchased an $800 ticket to the December 31 game of the Toronto Maple Leafs. Parking for the game was expected to cost approximately $30, and Holden would probably spend another $25 for a souvenir program and food. It is now December 14. The Maple Leafs were having a miserable season and the temperature was expected to peak at 5 degrees Celsius on game day. Merina therefore decided to skip the game and instead, took her sister to a Lady Gaga concert, with tickets and dinner costing $150. The sunk cost associated with this decision situation is:

Question

Quizplus · Accepted Answer

The sunk cost is the $800 ticket that Merina purchased, as it is a past expense that cannot be recovered regardless of her decision to attend the game or not.

In Early September, Merina Holden Purchased an $800 Ticket to the December