Spilt Milk And Other Sunk Costs

Sometime in your life, you have probably been told, "Don't cry over spilt milk," or "Let bygones be bygones." These adages hold a deep truth about rational decisionmaking. Economists say that a cost is a sunk cost when it has already been committed and cannot be recovered. In a sense, a sunk cost is the opposite of an opportunity cost: An opportunity cost is what you have to give up if you choose to sunk cost a cost that has already been committed and cannot be recovered

Figure 14-3


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First Time Home Buyers Guide

First Time Home Buyers Guide

If you are getting ready to purchase your first home or if you think you can't afford to purchase your first home, don't make another move until you have read this important information! Every year, Federal, State and Local government and community development programs help thousands of people obtain there first home.

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