Sunk cost

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Sunk cost. 1 connected concept: Opportunity cost (related to).

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Community · Opportunity cost

Summary

In economics and business decision-making, a sunk cost is a cost that has already been incurred and cannot be recovered.

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distinction from opportunity cost
Unlike opportunity cost, which is forward-looking and considers future alternatives, sunk costs are past expenditures that should not influence rational future decisions.
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