Asked by
Heather Layne
on Nov 19, 2024
Verified
The potential benefit that is given up when one alternative is selected over another is called a sunk cost.
Sunk Cost
A cost that has already been incurred and that cannot be changed by any decision made now or in the future.
Potential Benefit
The expected advantages or positive outcomes that may result from a specific action, investment, or decision.
- Comprehend the crucial role that opportunity costs and sunk costs play in decision-making activities.
Verified Answer
JI
Learning Objectives
- Comprehend the crucial role that opportunity costs and sunk costs play in decision-making activities.