Why Is a Sunk Cost Not Part of the Opportunity

question 96

Multiple Choice

Why is a sunk cost not part of the opportunity cost of a decision?

• A)Because the money is gone,regardless of your current decision.
• B)Because the expense would too often outweigh the benefits.
• C)Because the chances of you recouping it are infinitesimally small.
• D)Sunk costs are a part of the opportunity cost of a decision.

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Definitions:

Personal Selling

A sales approach involving direct, face-to-face interaction between salespeople and prospective customers to persuade them to make a purchase.

Publicity

The act of gaining public attention or visibility for a person, product, or organization, often through the media.

Push Strategy

Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.

Promotional Mix

A combination of advertising, sales promotion, public relations, personal selling, and direct marketing strategies used to achieve marketing goals.