Principles of Macroeconomics / Unit 1 MAC 0020 short lesson, about 20 seconds
Sunk Costs
Captions available
The idea
A sunk cost is money or effort already spent that cannot be recovered, so it should not affect a current decision.
In practice
Walking out of a bad film does not waste the ticket; it is spent either way.
Where people slip
Opportunity cost looks forward at what a choice gives up; sunk cost looks back at what is already gone.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
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