Suppose you have purchased a non-refundable plane ticket and, at the last moment, you cannot take the trip. You can, however, sell the ticket. If you paid ¥2,000 for the ticket, and the cost of sending the ticket to someone through overnight mail is ¥30, what is the minimum you should accept for the ticket? A: $2,000 because that is what the ticket cost. B: $2,030 because that is the cost of the ticket and of getting it to the buyer. C: More than $2,030, so that you can make a profit. D: $30 because the $2,000 cost is a sunk cost.

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2022-05-31

Suppose you have purchased a non-refundable plane ticket and, at the last moment, you cannot take the trip. You can, however, sell the ticket. If you paid ¥2,000 for the ticket, and the cost of sending the ticket to someone through overnight mail is ¥30, what is the minimum you should accept for the ticket? A: $2,000 because that is what the ticket cost. B: $2,030 because that is the cost of the ticket and of getting it to the buyer. C: More than $2,030, so that you can make a profit. D: $30 because the $2,000 cost is a sunk cost.

Suppose you have purchased a non-refundable plane ticket and, at the last moment, you cannot take the trip. You can, however, sell the ticket. If you paid ¥2,000 for the ticket, and the cost of sending the ticket to someone through overnight mail is ¥30, what is the minimum you should accept for the ticket?
A: $2,000 because that is what the ticket cost.
B: $2,030 because that is the cost of the ticket and of getting it to the buyer.
C: More than $2,030, so that you can make a profit.
D: $30 because the $2,000 cost is a sunk cost.

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