You Have Just Purchased a Car for $20,000 and Learned

question 20

Multiple Choice

You have just purchased a car for $20,000 and learned that you have failed the driving test.Your brother offered to purchase the car from you for $19,000 and you have accepted the offer.The $1,000 loss represents

• A) the marginal cost of the car.
• B) the sunk cost of a bad decision.
• C) the average cost of the car.
• D) the marginal benefit of getting rid of the car.
• E) the benefit of the car.