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Oscar purchased a $ 3 0 steak for dinner, but burned it bad on the grill. Since he paid top dollar for the steak he
Oscar purchased a $ steak for dinner, but burned it bad on the grill. Since he paid top dollar for the steak he figures he should eat it anyways. Is Oscar properly using economic reasoning?
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Yes, if he doesn't eat the steak he will have wasted economic resources.
No the opportunity of eating the steak is whatever else he could have purchased for the $
No the $ spent on the steak is a sunk cost and should not be included in his decision whether to eat the steak or not.
Yes, the marginal cost of not eating the steak would be $
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