Asked by
Stacy Breenda
on Oct 25, 2024Verified
Sara spends $25 for an all-day ticket to an amusement park.After one ride,it begins to rain and she wishes she had never come.Since she has already paid for her ticket,she should stay at the amusement park until it closes or she has wasted her $25.
Sunk Costs
Costs that have already been incurred and cannot be recovered, and therefore, should not be considered in making future economic decisions.
All-Day Ticket
A pass that allows unlimited use or access to a service, such as public transport or an event, for the entire day.
- Comprehend the effects of sunk costs on decision-making in economics.
Verified Answer
KB
Learning Objectives
- Comprehend the effects of sunk costs on decision-making in economics.
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