Which of the following statements is most accurate about sunk costs?
A. Sunk costs are unrecoverable and therefore shouldn't influence economic decisions.
B. All fixed costs are sunk costs.
C. All expenditures, once made, represent sunk costs.
D. Sunk costs are important in business decisions because they need to be recovered.
Answer: A
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The main reason people hold money is that
A) money is intrinsically valuable. B) money is used to buy goods and services. C) money is power. D) money provides a standard of value.
Refer to Table 10-2. Suppose Keira's income increases from $18 to $23 but prices have not changed. What is her utility maximizing bundle now?
A) 5 cups of soup and 4 sandwiches B) 5 cups of soup and 5 sandwiches C) 6 cups of soup and 5 sandwiches D) 4 cups of soup and 5 sandwiches
The slowdown in labor productivity growth from 1973 to 1995 ________ matched by a similar slowdown in MFP growth, suggesting that the growth rate of capital had ________ to do with the productivity problem
A) was, much B) was, little C) was not, much D) was not, little
The most commonly used notion of economic efficiency originated in the writings of:
A. John Nash. B. Kenneth Arrow. C. Gerard Debreu. D. Vilfredo Pareto.