A sunk cost
A) Causes a decision maker to choose to pursue less of an activity
B) Causes a decision maker to choose to pursue more of an activity
C) Increases the marginal cost of an activity
D) Has no effect on a decision maker's best choice

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered. It should not be considered in making decision for future actions. Therefore, it has no effect on a decision maker's best choice.

A Sunk Cost