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A city spent $2 million to build a pedestrian bridge that has proved unsafe. The city can repair this bridge or demolish it and build a new one. If the resulting bridge would be equally attractive and useful either way, how should the $2 million already spent factor into the city's decision?

Sagot :

The city should ignore the $2 million, since either way it has already been spent.

What is sunk cost?

Sunk cost is a cost that has already been incurred. It means that the amount has already been spent. Cost that has already been incurred should not be considered when making future economic decsions.

To learn more about sunk cost, please check: https://brainly.com/question/26502221

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