Which of the following statements is true?

A. Neither sunk costs nor the sinking of a cost will affect a decision maker's best choice.

B. Both sunk costs and the sinking of a cost will affect a decision maker's best choice.

C. Sunk costs will affect a decision maker's best choice, but the sinking of a cost will not.

D. Sunk costs will not affect a decision maker's best choice, but the sinking of a cost will.


D. Sunk costs will not affect a decision maker's best choice, but the sinking of a cost will.

Economics

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Refer to Figure 8.2. As the competitive industry, not just the firm in question, moves toward long-run equilibrium, what will the price be?

A) $60 B) $64 C) $70 D) $71 E) $80

Economics

For a corporation, an important advantage of selling stocks instead of bonds is that:

a. in the case of a bond, the corporation has to pay a fixed rate of interest, while in the case of a stock, the corporation is not liable to pay any interest. b. in the case of a bond, the corporation has to pay a fixed rate of interest, while in the case of a stock, the corporation earns a fixed rate of interest. c. a bond can generate funds for the corporation only once, while a stock generates funds for the corporation each time it is resold. d. it is difficult to sell a bond because people perceive that a bond is risky, while it is easier to sell a stock because people perceive that it is safe to invest in stock.

Economics

A decrease in interest rates can ________ the demand for stocks as stocks become relatively ________ attractive investments as compared to bonds

A) decrease; less B) increase; more C) decrease; more D) increase; similar E) increase; less

Economics

The market for corn in Kansas is considered to be competitive. This means there are ________ buyers and ________ sellers of corn in Kansas.

Fill in the blank(s) with the appropriate word(s).

Economics