Your car needs major mechanical repairs and you are considering your options of repairing your car...
Your car needs major mechanical repairs and you are considering your options of repairing your car or replacing your car. Which of the following represents a sunk cost that should not be considered in your decision?
The value of your car in repaired condition.
The original purchase price of your car.
The pruchse price a new car.
The cost to repair your car to working condition.
Homework Answers
"B"
The original purchase price of your car is the sunk cost i.e. that cost have been paid and it should not be considered while making a decision about repairs.
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