Dillon purchased his nonrefundable,nontransferable ticket to see the M.C.Hammer/Vanilla Ice Career Revival show for $30 last week;Bob has yet to buy his ticket,but wants to go.In deciding whether to go to the show,the price of the ticket is a __________ to Dillon and a __________ to Bob.
A) sunk cost;sunk cost
B) relevant cost;irrelevant cost
C) sunk cost;relevant cost
D) marginal cost;opportunity cost
E) irrelevant cost;relevant cost

Question

Quizplus · Accepted Answer

For Dillon, the ticket price is a sunk cost because he has already paid for it and cannot recover it. For Bob, the ticket price is a relevant cost because he has not yet purchased it and it will affect his decision to attend the show.

Dillon Purchased His Nonrefundable,nontransferable Ticket to See the M