Natalie purchased a concert ticket recently for $50.She is trying to decide whether to drive,take a taxi,or ride the public transit bus.The cost of driving to the concert is a sunk cost because Natalie purchased her car several years ago.

Question

Quizplus · Accepted Answer

The cost of driving to the concert is not a sunk cost because it involves variable expenses such as gas and parking, which are directly related to the decision to drive to the concert. Sunk costs are costs that have already been incurred and cannot be recovered, such as the purchase price of the car.

Natalie Purchased a Concert Ticket Recently for $50