Any time one purchases a ticket in advance of an event,if the ticket is non-refundable and non-transferable,then on the day of the event,
A) the ticket is part of the cost of going.
B) the ticket is a marginal cost.
C) the ticket is part of the cost of going if it was expensive.
D) the ticket is a sunk cost and should pay no role in the decision to go or not.
E) the ticket is an average cost but not a sunk cost.

Question

Quizplus · Accepted Answer

A non-refundable and non-transferable ticket is a sunk cost, meaning that the cost has already been incurred and cannot be recovered. Therefore, the cost of the ticket should not play a role in the decision to go or not. It is not part of the cost of going forward, nor is it a marginal or average cost.

Any Time One Purchases a Ticket in Advance of an Event,if