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After getting rejected for a date, Kelsey's father attempts to comfort him. Kelsey responds, "Leave me alone, Dad! You'll never understand what I'm going through!" This common adolescent distortion is known as
Opportunity Cost
The cost of forgoing the next best alternative when making a decision or choosing to pursue a particular action.
Accounting Costs
Costs that appear on the financial statements of a company.
Economic Decisions
Choices made by individuals, firms, or governments regarding the allocation of resources to optimize benefits.
Sunk Cost
A cost that has already been incurred and cannot be recovered. It should not impact future business decisions because it cannot be changed.
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