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Seinfeld Economics: The Strike (Submarine sandwiches)
by Linda Ghent `

Sunk costs are costs that have already been incurred and which cannot be recovered. They should not be considered when making decisions.

From an economist's perspective, making choices involves thinking 'at the margin' - that is, making decisions based on small changes in resources. Doing so leads to the optimal decisions being made, subject to preferences, resources and informational constraints.

This Commentary is related to the following Clips:
Seinfeld: The Strike (Submarine sandwiches) by Larry David & Jerry Seinfeld (1997) Elaine has eaten 23 bad sub sandwiches, and if she eats a 24th, she'll get one free. She is determined to do it, even though Jerry advises her to ignore sunk costs and walk away.