Costco requires all customers to buy a one-time membership before they can shop. The membership fee is a sunk cost.

Name: Costco requires all customers to buy a one-time membership before they can shop. The membership fee is a sunk cost.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered. In this case, the membership fee is paid upfront and cannot be refunded, making it a sunk cost.

Costco Requires All Customers to Buy a One-Time Membership Before