Avoidable Costs vs Unavoidable Costs - such as Sunk Costs

The video tutorial explains the concepts of avoidable and unavoidable costs, highlighting their relevance in decision-making. An example is provided comparing the costs of driving versus flying for a trip, illustrating how to identify relevant costs. The tutorial also covers sunk costs, emphasizing their irrelevance in future decisions and warning against the sunk cost fallacy.

What new insight or understanding did you gain from this video?