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Matthew Bought a 1994 Honda Civic for $2,000

Question 22

Multiple Choice

Matthew bought a 1994 Honda Civic for $2,000. A friend offered him $500 for the car last week. Matthew has been offered a job in France. Driving an old Honda from Toronto to France is not possible. When calculating his opportunity costs, Matthew should include


A) the $1,500 loss on the Honda.
B) nothing, because this is a sunk cost.
C) the $500 he could get from selling the Honda.
D) the $2,000 he spent to buy the car.
E) the cost of buying a similar car in France.

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