After studying tap dancing for three years,Dan gave up the idea of becoming a professional dancer and immediately started to study economics two years ago.He has decided that economics is for him and he would like to make a career out of his economics studies.Which of the following is true?
A) The three years spent in tap dancing was a marginal cost in his economics career.
B) The three years spent in tap dancing was an average cost in his economics career.
C) The three years spent in tap dancing was a sunk cost in his economics career.
D) The five years spent in studying economics and tap dancing was an average cost in his economics career.
E) The five years spent in studying economics and tap dancing was a marginal cost in his economics career.

Question

Quizplus · Accepted Answer

The three years spent in tap dancing is a sunk cost in Dan's economics career because it is a cost that has already been incurred and cannot be recovered. It is not relevant to his current decision about pursuing a career in economics.

After Studying Tap Dancing for Three Years,Dan Gave Up the Idea