Principles of Microeconomics / Unit 1 MIC 0021 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 decision still ahead.
In practice
Walking out of a bad film does not waste the ticket, spent either way.
Where people slip
Opportunity cost looks forward at what a choice gives up; sunk cost looks back at what is gone. Only the first belongs in a decision now.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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