A sunk cost is one that
a. changes as the level of output changes in the short run.
b. was paid in the past and will not change regardless of the present decision.
c. should determine the rational course of action in the future.
d. has the most impact on profit-making decisions.
b
You might also like to view...
If the cost of labor increases, the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate inward around the point where only capital is employed in production. D) shift inward in parallel fashion.
Which of the following can increase customer awareness?
a. Advertising b. Promotional activities c. Service d. All of the above
Wild Woman's Wild Wilderness Adventures sells 1,000 vacation packages each year. The average total cost of the packages is $450 and each package sells for $770 . Annual profit is
a. $230 b. $320 c. $2,300 d. $320,000 e. $3.2 million
If sugar and Nutrasweet are substitutes, then we can be certain that a decrease in the price of sugar will lead to an increase in the consumption of:
A. Nutrasweet only. B. sugar and Nutrasweet. C. sugar only. D. None of the statements is correct.