Sunk cost

In economics and business decision-making, a sunk cost (also known as retrospective cost) is a cost that has already been incurred and cannot be recovered. Sunk costs are contrasted with prospective costs, which are future costs that may be avoided if action is taken. In other words, a sunk cost is a sum paid in the past that is no longer relevant to decisions about the future. Even though economists argue that sunk costs are no longer relevant to future rational decision-making, people in everyday life often take previous expenditures in situations, such as repairing a car or house, into their future decisions regarding those properties.

Sunk cost - Wikipedia Jump to content From Wikipedia, the free encyclopedia Unrecoverable cost that has been incurred "Sunk Costs" redirects here. For the TV series episode, see Sunk Costs ( Better Call Saul ) . In economics and business decision-making , a sunk cost (also known as retrospective cost ) is a cost that has already been incurred and cannot be recovered. [ 1 ] [ 2 ] Sunk costs are contrasted with prospective costs , which are future costs that may be avoided if action is taken. [ 3 ] In other words, a sunk cost is a sum paid in the past that should no longer be relevant to decisio

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