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What type of cost is our expenditure on tickets

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Reference no: EM132275704

The sunk cost fallacy

You have good tickets to a basketball game an hour's drive away. There's a blizzard raging outside, and the game is being televised. You can sit warm and safe at home and watch it on TV, or you can bundle up dig out your car, and go to the game. What do you do?

  1. What type of cost is our expenditure on tickets?
  2. Why is the cost of the ticket irrelevant to your current decision about whether to stay at home or go to the game?

Reference no: EM132275704

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