Tara's cellphone carrier would charge her $250 to cancel her current contract. If Tara wants to change cellphone carriers, the $250 she would have to pay is considered a:

Question

Quizplus · Accepted Answer

The cost of $250 that Tara would have to pay to cancel her current contract and switch to a new cellphone carrier is a switching cost. A switching cost is a fee or expense that a consumer incurs when changing from one product, service, or supplier to another. In this case, the switching cost is the fee charged by Tara's current cellphone carrier for canceling her contract early.

Tara's Cellphone Carrier Would Charge Her $250 to Cancel Her